The outlook for the Aussie Dollar has now shifted to neutral from bullish in the near term, and is seen gravitating between 0.7540 and 0.7690 according to FX Strategists at UOB Group.
“The ‘RBA inspired’ plunge in AUD was clearly unexpected. While the sharp decline appears to be running ahead of itself, there is no sign of stabilization just yet and a push below the 0.7591 low registered yesterday would not be surprising. That said, the next support at 0.7570 is unlikely to come into the picture for now”.
“AUD plunged below the stop-loss for our bullish view at 0.7630 to hit a low of 0.7591. The sharp drop is clearly unexpected and has severely impacted the longer-term bullish outlook for AUD. In the meanwhile, further AUD weakness would not be surprising but we view any decline as part of a broader consolidation phase and not the start of a major bearish reversal. To put it another way, this pair is expected to trade sideways for now, likely within a broad 0.7540/0.7690 range”.