AUD/USD: Downside momentum below the 0.6850 mark – OCBC

The AUD/USD has dropped to 0.6855, down -0.13% on a day at time of writing. Terence Wu, an FX strategists at OCBC Bank, thinks the 0.6850 level holds the downside momentum while the upside potential is capped by the 0.6950 mark.

Key quotes

“The AUD/USD continues to fluctuate within a tight range, pending further directionality from the risk front.” 

“In the interim, expect the pair to remain sideways, with a slight downside bias. Nevertheless, as long as the aussie remains north of the 0.6850 and 0.6780, there should not be excessive downside momentum.”

“Any topside moves will be limited as long as the AUD/USD pair remains limited below 0.6950/00. Note however, that spot remains significantly above the short-term implied valuations at this juncture.”