AUD/USD: Pullback could slip back to the 0.6170 region – UOB

A pullback in AUD/USD could see the 0.6170 level retested in the next weeks, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “We highlighted last Friday that ‘there is scope for rebound to extend but any advance is expected to face solid resistance at 0.6400’. While AUD edged higher, it did not challenge the 0.6400 level as it traded sideways after touching a high of 0.6385. Momentum indicators are mostly ‘neutral’ now and AUD is likely to consolidate from here. Expected range for today, 0.6300/0.6380.”

Next 1-3 weeks: “After dropping sharply last Wednesday (15 Apr), AUD has not been able to make headway on the downside. For now, we continue to hold the same view from Thursday (16 Apr, spot at 0.6300) wherein a short-term top is in place and the current movement is deemed as a pullback that could extend to 0.6170. At this stage, the prospect for a sustained decline below 0.6170 is low. On the upside, only a move above 0.6400 would indicate that the current mild downward pressure has eased.”