AUD/USD room for a test of 0.7640 – UOB

The prospects for the Aussie Dollar remain on the neutral side for the time being, with the likeliness of a test of the 0.7640 area in the next week, in view of FX Strategists at UOB Group.

Key Quotes

“While we indicated last Friday that any AUD weakness is not expected to move below the strong 0.7540 support, the rapid and sharp recovery from a low of 0.7573 comes a surprise. The rebound appears to have scope to extend higher but at this stage, a sustained move above 0.7635/40 is not expected (stronger resistance is at 0.7660)”.

“AUD closed on a positive note last Friday and while shorter-term downward momentum has eased, it is too early to expect a sustained recovery. In other words, there is no change to the current neutral outlook for AUD and we continue to expect this pair trade sideways between 0.7540 and 0.7660”.