AUD/USD outlook shifted to neutral – UOB

According to FX Strategists at UOB Group, the perspective on the Aussie Dollar has shifted to neutral from bearish for the near term.

Key Quotes

“While the anticipated AUD strength exceeded our expectation but taking out the 0.7400 resistance, the rapid and sharp pull-back from a high of 0.7421 has resulted in a mixed outlook. The immediate bias appears to be tilted to the downside but 0.7360 is expected to offer solid support (the major support is still at 0.7330)”.

“AUD edged above the trailing stop-loss for our bearish view at 0.7420 last Friday with a high of 0.7421. The bearish phase that started on 04 May (spot at 0.7430) has ended and AUD has likely moved into a sideway consolidation phase, expected to be between 0.7330 and 0.7445”.