UBS FX Strategy

AUDUSD traded up to 0.7731 after the weaker-than-expected US retail sales data yesterday. With UST 10y yields back higher, however, spot lost momentum and turned heavy in Asia, trading as low as 0.7668. This was the correction we had expected and would now fade rallies to 0.7720-0.7750, the short-term resistance, with stops above 0.7850, targeting 0.7550. The downtrend line from September lies around 0.7830

Read the full report: FX Research