According to UOB Group’s FX Strategists, the negative phase in AUD/USD seems to have ended.
24-hour view: “Yesterday, we held the view that AUD ‘is unlikely to strengthen much further’ and we expected it to ‘trade between 0.7535 and 0.7595’. AUD subsequently traded within a narrower range than expected (0.7566/0.7592) before closing little changed at 0.7583 (+0.09%). The underlying tone has improved somewhat and AUD could edge higher but a sustained rise above 0.7600 is unlikely (next resistance is at 0.7620). Support is 0.7565 followed by 0.7545.”
Next 1-3 weeks: “On Wednesday (23 Jun, spot at 0.7555), we highlighted that ‘the prospect for AUD to weaken to 0.7450 has diminished’ and ‘a break of 0.7600 would indicate that the weak phase in AUD has come to an end’. While 0.7600 is still intact, the loss in momentum over the past couple of days suggests that the weak phase that started more than a week ago has come to an end. The current movement is viewed as the early stages of a consolidation phase and AUD is expected to trade within a 0.7520/0.7650 for now.”
