AUD/USD faces some consolidation ahead – UOB

FX Strategists at UOB Group believe the Aussie Dollar could now start a correction/consolidation phase.

Key Quotes

“On Wednesday (22 Nov), we highlighted the ‘diminished odds for further AUD weakness’. While the ‘stop loss’ for our bearish view at 0.7640 is still intact (overnight high of 0.7638), the strong daily closing is enough to indicate that AUD has made a short-term low at 0.7532 earlier this week”.

“The current movement is viewed as the start of a correction/consolidation phase even though the immediate bias is for a probe higher towards the top of the expected 0.7550/0.7695 consolidation range. At this stage, any up move is unlikely to have enough momentum to challenge the major level of 0.7735”.