AUD/USD further downside on the cards – UOB

FX Strategists at UOB Group believe there is still room for further pullbacks in the pair.

Key Quotes

“After coming close to our stop-loss at 0.7880 (high of 0.7875 on Wednesday, 04 Oct), AUD staged a surprisingly strong and sharp decline yesterday (due to very weak Australian retail sales data)”.

“The sharp drop has clearly improved the odds for further downside extension but we continue to see solid support at 0.7740 and this level would not be easy to crack (next support is at 0.7700). Stop-loss remains unchanged at 0.7780 for now even though on a shorter-term note, 0.7865 is already a rather strong resistance”.