More on the 0.7 big figure for AUD/USD … and on the 0.6960 level.
I posted earlier on SG reckoning AUD above 0.7 is what it'll take for an RBA cut:
More on 0.7, this via UOB:
The analyst first provides some background:
- "We expected AUD to strengthen further since last Thursday (27 Jun, spot at 0.6985) and indicated that AUD is expected to "trade with an 'upside bias' and move to 0.7025".
- We added last Friday (28 Jun, spot at 0.7005) that "if AUD were to close above 0.7025, it would indicate the start of a 'positive phase' towards 0.7065".
- AUD subsequently touched 0.7025 during NY hours on Friday before extending its gains upon opening this morning.
And, then,. the outlook (bolding mine):
- In other words, our view from here is "only a NY closing above 0.7025 would indicate the start of a 'positive phase' in AUD". The prospect for AUD to close above 0.7025 is not very high for now but it would remain intact until the strong support at 0.6960 is taken out (level was at 0.6930 previously)".