AUD/USD neutral above 0.7430 – UOB

FX Strategists at UOB Group suggested the Aussie dollar could shift its outlook to neutral from bearish above 0.7430.

Key Quotes

“While AUD extended above the 0.7405 resistance (high of 0.7414), the up-move is not accompanied by strong momentum. That said, another attempt to move higher would not be surprising but 0.7430 is a major resistance and this level is unlikely to yield so easily. On the downside, AUD has to move below 0.7360 to indicate that the immediate upward pressure has eased”.

“The bearish phase that started last Monday appears to be close to ending. The rebound from the low of 0.7311 has been more resilient than expected and from here, a move above 0.7430 would indicate that AUD has entered a neutral consolidation phase (likely within a broad 0.7320/0.7510 range”.

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