AUD/USD has not followed through on the recent break above 0.6725. However, analysts at Credit Suisse see the current pause as a correction ahead of further upside.

Near-term consolidation now seen as likely

“Our bias is for the current pause to extend short term. However, with medium-term MACD still rising and with a small top in the USD in place, we think the risk remains pointed to the upside over the next one month.” 

“We continue to look for an eventual and sustained close above 0.6725 and then above the recent high at 0.6797 after this pause, which would then be seen to expose the 200 -day average at 0.6943.”

“Immediate support is seen at the 13-day exponential average at 0.6607 and then below at 0.6577, though below the recent low and the neckline to the recent base at 0.6552/47 remains needed to raise thoughts of a more significant near-term move lower.”