AUD/USD still under downside pressure – UOB

In view of FX Strategists at UOB Group, the Aussie Dollar stays under pressure unless it can regain the mid-0.8000s.

Key Quotes

“We have held the same view since last Thursday (14 Sep 17) wherein we believe that AUD is “under increasing downward pressure unless can it reclaim 0.8045”.

“AUD staged another feeble attempt to move higher yesterday but succumbed to selling pressure and dropped sharply after touching a high of 0.8035. While the price action is in line with our expectation, the decline was checked by the strong support highlighted previously at 0.7940 (overnight low has been exactly 0.7940)”.

“Downward pressure has increased considerably and the risk is clearly greater on the downside but we prefer to wait for a NY closing below 0.7940 (minor rising trend-line support) before adopting a bearish stance. This scenario would not be surprising unless AUD can move and stay above 0.8010 within these 1 to 2 days. Looking further ahead, a shift to a bearish stance would have a target of 0.7870 followed by last month’s low near 0.7805/10”.