AUD/USD neutral, potential test of 0.7460 – UOB

According to the research team at UOB Group, AUD/USD risks a test of the 0.7460 area in the next weeks.

Key Quotes

“The sharp recovery from the 0.7494 low appears to be overextended and further sustained up-move is not expected. AUD is more likely to consolidate its gains and trade sideways for today”.

“The unexpected sharp drop in AUD touched a low of 0.7494 yesterday. Despite the strong bounce from the low, the undertone is still weak and the pull-back has scope to extend further to 0.7460. At this stage, a clear break below this level is not expected. Overall, AUD is expected to stay under pressure unless it can reclaim 0.7630 within the next few days”.