AUD/USD a drop to 0.7300 loses traction – UOB

FX Strategists at UOB Group remain bearish on the Aussie Dollar, although a test of the 0.7300 handle seems to have run out of steam in the near term.

Key Quotes

“While the bearish phase that started last Thursday, 04 May (spot at 0.7430) is still intact, the combination of waning downward momentum and oversold conditions continue to suggest low odds for extension to 0.7300 (we have suggested taking partial profit at 0.7335/40 previously)”.

“However, confirmation of a short-term low is only upon a move back above 0.7420. Until then, another push lower to 0.7300 cannot not ruled out just yet despite the low odds”.