AUD/USD likely to trade relatively unchanged near 0.69 – CitiBank

Analysts at Citibank, see the AUD/USD pair relatively unchanged over the next months, trading near the 0.6900 area. They point out the recent improvements in the labour market means that the Reserve Bank of Australia can avoid cutting rates in February, which may favor the Australian dollar. 

Key Quotes:

“Near-term upside risks come in the form of a Phase 1 China-US trade deal, but also any escalation in Iran-US tensions may weigh on AUD. In MT, underlying issues between China and US likely persist and prevent material upside. We see AUD/USD relatively unchanged over the forecast period.”

“AUD/USD’s RSI slipped to oversold territory which may limit the downside room and find the support at 0.6671. with resistance at 0.6930 and 0.7032. If the pair falls below 0.6671, the next major support may be the October 2008 low at 0.6009.”