AUD/USD shifted to neutral stance – UOB

Following recent price action in AUD/USD, its outlook has now shifted to neutral from bullish, suggested analysts at UOB Group.

Key Quotes

“The seemingly bearish RBA’s minutes sent AUD tumbling to a low of 0.7476. While the current decline appears to be running ahead of itself, there are no signs of stabilization just yet and another leg lower seems likely from here. That said, 0.7445 is a major support and a clear break below this level is not expected, at least not for today”.

“We shifted to a neutral stance yesterday and there is no change to the view. The current pull-back appears to have room to extend lower to 0.7445 (with lower odds for further extension to 0.7400). Overall, this pair is expected to stay under pressure in the next several days unless it can reclaim 0.7605 (0.7560 is already a strong short-term resistance)”.