Selling pressure could lose traction above 0.7265 – UOB
UOB Group’s FX Strategists see AUD/USD could avoid a deeper pullback on a surpass of 0.7265 in the near term.
24-hour view: “We highlighted yesterday that ‘as long 0.7230 is not breached, the weakness in AUD could test 0.7155 first before stabilization can be expected’. However, AUD rebounded to 0.7257 during NY session before easing off. The rebound has room to extend but a clear break of the strong resistance at 0.7265 is unlikely. Support is at 0.7215 followed by 0.7195.”
Next 1-3 weeks: “Yesterday (30 Sep, spot at 0.7190), we highlighted that AUD ‘is likely to weaken further’ and that ‘the next support is at 0.7155 followed by the August’s low near 0.7110’. We did not quite expect the subsequent sharp rebound to 0.7257 during NY session. We continue to hold the same view for now but a break of 0.7265 (no change in ‘strong resistance’ level) would indicate that the current weakness is not ready to move to 0.7155 just yet.”