AUD/USD risk still clearly on the downside – UOB

FXStreet (Barcelona) - Analysts at UOB Group predict a break below 0.7700 to shift AUD/USD’s focus towards 0.7450, expecting any short-term rebound to hold below 0.7930.

Key Quotes

“In our update last Friday, we indicated that the break below 0.8035 is expected to trigger further AUD weakness. It has been a week, and our target at 0.7700 was almost met yesterday with a low of 0.7720.”

“Strong impulsive downward momentum coupled with increasing expectations of a possible rate cut by RBA next Tuesday suggests that the risk is still clearly on the downside.”

“A break below 0.7700 will shift the focus towards the next support at 0.7450.”

“We expect any short-term rebound to hold below the current trailing-stop at 0.7930 (from 0.8060 yesterday).”

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