AUD/USD pullback appears overextended – UOB

FX Strategists at UOB Group assessed the recent price action in AUD/USD.

Key Quotes

“After rebounding strongly to a high of 0.7556 on Tuesday (02 Apr), the sudden and sharp plunge in AUD yesterday came as a surprise. While the decline appears to be overextended, the rapid improvement in momentum suggests that there is room for further extension towards 0.7370 (next support at 0.7330)”.

“Overall, AUD is expected to stay under pressure in the coming days unless it can reclaim 0.7485 (key resistance is higher up near 0.7550)”.