Further AUD/USD weakness unlikely – UOB

According to FX Strategists at UOB Group, extra pullbacks in spot appear unlikely in the near term.

Key Quotes

24-hour view: “AUD traded sideways as expected, albeit at a narrower range than anticipated. The undertone has improved somewhat but it is too soon to expect a sustained up-move. This pair is more likely to continue to trade sideways but at a higher range of 0.7765/0.7810”.

Next 1-3 weeks: “The recent downward momentum is beginning to wane and from here, the odds for further AUD weakness have diminished. However, confirmation of a short-term low is only upon a break of 0.7835 (stop-loss level unchanged). A break of 0.7835 would not be surprising unless AUD can move and stay below last week’s low near 0.7730/35 within these 1 to 2 days”.