AUD/USD still under pressure, needs to regain 0.7885 – UOB

In light of the recent sharp sell-off, the pair should now regain 0.7885 in order to alleviate downside pressure, suggested FX Strategists at UOB Group.

Key Quotes

“The outsized decline yesterday was unexpected as AUD registered a loss of -1.02%, the largest one-day drop since early February. We have previously expected a stronger rebound to 0.7940 but this is not expected to happen after yesterday’s price action (high has been 0.7916 on Wednesday, 14 Mar)”.

“The sharp down-move has shifted the immediate pressure to the downside even though it is premature to expect an end to the current month-long neutral phase”.

“That said, AUD is expected to stay under pressure from here unless it can reclaim 0.7885 (minor resistance is at 0.7850). On the downside, 0.7715/25 is a solid support zone and would not be easy to break. Looking ahead, a clear break of 0.7715/25 would indicate the start of a fresh bearish phase”.