AUD/USD still targets 0.8000 and 0.8050 – UOB

AUD/USD is seen on its way to visit the key area at 0.8000 and could extend the upside to 0.8050 in the near term, suggested FX Strategists at UOB Group.

Key Quotes

“We indicated yesterday that “further AUD gains are likely but the major 0.8000 level is likely out of reach”. In line with expectation, AUD extended its gain and hit a high of 0.7992. However, the subsequent sharp drop to 0.7898 and the rapid swing higher was unexpected. The choppy moves have resulted in a mixed outlook and this pair is expected to trade sideways for today, likely holding within the 0.7898/0.7992 range registered yesterday”.

“AUD had a wild day yesterday, rising initially to a high of 0.7992 before dropping sharply to 0.7898 and swinging higher to end the day largely unchanged. The bullish phase that started last Friday (14 Jul) is still intact but this pair may find it difficult to maintain a hold at these lofty levels. As indicated yesterday, those with remaining long may like to exit their position if there is a pop higher to 0.8050 within these few days. Stop-loss remains unchanged at 0.7850”.