Flash: AUD/USD: Cautious of a technical break below 0.8800 - UBS

FXstreet.com (Córdoba) - Recent economic data in Australia has remained stable, with robust retail sales and residential building approvals in November, commented the UBS analyst team.

Key Quotes

"Notwithstanding this, we maintain our cautious view on the AUDUSD and see further downside risk to 0.85 and expect the Reserve Bank of Australia to retain an explicit easing bias".

"From a technical perspective, we are cautious of a breach below the support level of 0.88, which might trigger stop-loss selling and could result in a quick AUDUSD decline towards 0.85".