In opinion of FX Strategists at UOB Group, the Aussie Dollar could still depreciate towards the 0.7560 area vs. the greenback, although this view has lost some traction as of late.
Key Quotes
24-hour view: “We highlighted last Friday that “a test of the major 0.7630 support would not be surprising but 0.7600 is unlikely to be seriously challenged”. AUD dipped to a low of 0.7625 before rebounding quickly. Downward momentum has eased and the current price action is viewed as part of a consolidation phase. In other words, sideways trading is expected for today, likely between 0.7640 and 0.7700”.
Next 1-3 weeks: “The 0.7630 target that was first highlighted last Thursday was exceeded as AUD dipped to a low 0.7625 during NY hours on Friday. Downward momentum has eased somewhat with the rapid rebound from the low but it is too early to expect a short-term bottom. The outlook for AUD is deemed as bearish until 0.7735 is taken out (stop-loss adjusted lower from 0.7755). Until then, another down-leg towards 0.7560 is not ruled out even though the odds for such a move are not that high”.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
GBP/USD extends recovery toward 1.2950 ahead of BoE policy decision
GBP/USD builds its recovery momentum toward 1.2950 in the European morning on Thursday, moving away from its lowest level since mid-August. Traders adjust their positions ahead of the key BoE and Fed monetary policy announcements.
EUR/USD stays firm near 1.0750 amid US Dollar pullback
EUR/USD holds higher ground near 1.0750 in the European session on Thursday. The pair finds fresh support from a broad US Dollar retreat, as traders unwind their Trunp win-inspired USD longs ahead of all-important Fed policy announcements.
Gold: Will Fed Chair Powell rescue XAU/USD?
Gold price is seeing a dead cat bounce from three-week lows of $2,644 in Asian trading on Thursday, as the dust settles in the aftermath of a massive sell-off, fuelled by Republican candidate Donald Trump’s victory in the US presidential race.
BoE set for a second interest rate cut this year on Thursday
Market consensus points to further easing by the Bank of England's (BoE) upcoming interest rate decision on Thursday. The BoE has held rates steady at 5.00% in the previous gathering, but shifting investor sentiment now suggests a possible 25-basis-point cut this week.
Trump wins: Tax cuts come with a cost
Donald Trump’s victory will ensure a lower tax environment that should boost sentiment and spending in the near term. However, promised tariffs, immigration controls and higher borrowing costs will increasingly become headwinds through his presidential term.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.