Further pullbacks in AUD / USD are likely as long as it remains trading below the 0.7680 level on the short-term horizon, UOB Group currency strategists noted.
Key statements:
24 Hour Outlook: “We highlighted yesterday that” oversold conditions suggest that the AUD is unlikely to weaken much further “and we expected the AUD to” consolidate and trade between 0.7570 and 0.7630. “Subsequently, the AUD traded within a range of 0.7564 / 0.7614. The move is still seen as part of a consolidation phase and the AUD is likely to continue to trade sideways. Expected range for today: 0.7575 / 0.7625 “.
Next 1-3 weeks: “We went negative on the AUD earlier this week. In our last narrative yesterday (March 25, price at 0.7595), we indicated that “the current weak phase is considered intact as long as the AUD does not move above 0.7680 (” strong resistance “level)”. While there is no change in our opinion for now, the short-term oversold conditions could lead to a couple of days of consolidation first. Looking ahead, a breakout of 0.7560 (note that the AUD fell to 0.7564 during New York hours) would shift focus to 0.7510 ”.
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