AUD/USD neutral, could slip back to 0.7510 – UOB

In opinion of FX Strategists at UOB Group, the outlook on AUD/USD stays neutral although it could grind lower towards the 0.7510 region in the next 1-3 weeks.

Key Quotes

“The major 0.7540/45 support held as expected as AUD popped to a high 0.7609 before easing off quickly. The current movement is viewed as a consolidation phase and sideways trading is expected from here, likely within a 0.7550/0.7510 range”.

“As indicated yesterday, as long as 0.7645 is intact, the sharp drop from the end of last week appears to have room to extend lower towards 0.7510 (with strong intervening support at 0.7545). At this stage, we view the current AUD weakness as a corrective pull-back and a sustained move below 0.7510 is not expected”.