AUD/USD bullish on a close above 0.8050 – UOB

FX Strategists at UOB Group could shift the outlook on the Aussie Dollar to bullish on a daily close above 0.8050.

Key Quotes

“The bullish phase that started about 2 weeks ago has ended when the trailing stop-loss at 0.7880 was breached yesterday after the release of the weaker than expected Australian CPI data (low of 0.7877)”.

“The subsequent explosive rally from the low was expected. The immediate bias is on the upside but we prefer to wait for a NY closing above 0.8050 before shifting to a bullish stance again. This scenario appears likely as long as AUD can stay above 0.7940 within these few days. The previous bullish call resulted in a profit of +2.07%”.