AUD/USD risks a re-test of 0.7808 – UOB

In view of Strategists at UOB Group, the Aussie Dollar could slip back to the 0.7810 area vs. the greenback in the near term.

Key Quotes

24-hour view: “Expectation for a stronger recovery was wrong as AUD dipped to a low of 0.7866 before rebounding. Despite the recovery, the undertone is still weak and a retest of the 0.7965 support would not be surprising (next support at 0.7945). Only a move back above 0.7935 would indicate that the current mild downward pressure has eased (minor resistance at 0.7920)”.

Next 1-3 weeks: “AUD dipped to a low of 0.7866 yesterday and the rising trend-line support highlighted in recent updates was not threatened. The rising trend-line is current sitting at 0.7845/50 and we continue to hold the view that a break of this critical support would presage a deeper decline towards the 0.7808 low seen last week. The odds for such a move have improved and would continue to improve unless AUD can move back above 0.7960 within these 1 to 2 days”.