AUD/USD appears constructive near term – UOB

FX Strategists at UOB Group remain constructive on the Aussie Dollar following the recent RBA meeting.

Key Quotes

“AUD dipped to a low of 0.7625 late last month and since then, it has struggled to move below this level. This was not surprising as 0.7625 was close to the rising trend-line support”.

“Downward momentum has eased and ‘bullish divergence’ is beginning to form on the daily MACD. The current price action is viewed as the early stages of a ‘basing phase’ and looking further out, a break of the strong 0.7730 resistance would suggest that a move towards 0.7805 has started”.

“The next resistance above this level is at last month’s high of 0.7898. All that said, until 0.7730 is clearly taken out, another dip below 0.7600 is not ruled out but based on the current lackluster momentum and the apparent bullish divergence, a break below the next support at 0.7570 appears highly unlikely at this stage”.