Further pullback in the AUD/USD appears to be out of favor in the immediate term, according to UOB Group FX Strategists.
Observation for 24 hours: “‘There is room for the AUD to go below 0.7450, but it is unlikely to keep a foothold below this level,’ we said last Friday. While our prediction of 0.7445 was correct, we did not expect the quick rebound from the low (high has been 0.7533). The quick rise appears to be exaggerated, and the Australian dollar is unlikely to gain much more momentum. Today, the AUD is more likely to trade in the range of 0.7490 to 0.7540.”
Within the next 1-3 weeks: “Since the middle of last week, we’ve been expecting the Australian dollar to fall. The AUD ‘is still under pressure, and the next support is at 0.7450,’ according to our most recent story from last Friday (02 Jul). AUD’is projected to remain under pressure unless it can go over 0.7530,’ we noted. After falling below 0.7450 (low of 0.7445), the Australian dollar rebounded to a high of 0.7533. Our’strong resistance’ level at 0.7530 has been breached, indicating that downward pressure has eased. The latest action is thought to be the beginning of a consolidation phase, and the AUD is projected to trade in the 0.7470/0.7570 area for the time being.”/n
