AUD/USD could breach the key 0.7300 mark in the next weeks, suggested FX Strategists at UOB Group.
Key Quotes
24-hour view: “AUD dropped to 0.7300 yesterday before rebounding quickly. Downward momentum is beginning to show signs of waning and this coupled with oversold conditions suggests that AUD is unlikely to weaken further. For today, AUD is expected to consolidate and trade between 0.7300 and 0.7355.”
Next 1-3 weeks: “AUD fell to an 8-month low yesterday as it tested the major support at 0.7300 (low has been 0.7300). While downward momentum remains strong, the sharp and rapid decline over the past few days are deeply oversold. That said, a break of 0.7300 is not ruled out but the pace of any further weakness is likely to be slower and 0.7270 is expected to offer solid support. On the upside, a breach of 0.7395 would indicate that the current weakness in AUD has run its course.”
