FX Strategists at UOB Group have shifted their focus on the Aussie Dollar to bearish and now expect the pair to test the 0.7330 area in the next weeks.
“While AUD moved below 0.7400 as expected, it rebounded quickly from a low of 0.7383 (target indicated at 0.7370 was not met). Despite the quick bounce from the low, it is too early to expect a sustained recovery. AUD is more likely to consolidate its recent loss and trade sideways at these lower levels, likely between 0.7380 and 0.7430”.
“We just turned bearish yesterday but are aware of the oversold condition. That said, as long as 0.7485 is not taken out, a push lower towards 0.7370 seems likely. A break of this level would shift the focus to 0.7330”.