AUD/USD is now likely to fluctuate between 0.7310 and 0.7420 in the next weeks, suggested FX Strategists at UOB Group.
Key Quotes
24-hour view: “We expected AUD to weaken last Friday but we were of the view that ‘any decline is unlikely to break the major support at 0.7310’. While our view was not wrong, we did not anticipate the sharp rebound from 0.7330 (high has been 0.7380).The rapid rise appears to be running ahead of itself and AUD/USD is unlikely to strengthen much further. For today, AUD is more likely to trade between 0.7335 and 0.7385.”
Next 1-3 weeks: “Our view from last Thursday (12 Aug, spot at 0.7370) still stands. As highlighted, the recent downward pressure has eased and AUD could trade within a 0.7310/0.7420 range for now. Looking ahead, the current consolidation is likely to be resolved by an attempt to move lower but AUD has to close below August’s low of 0.7290 before a sustained decline can be expected.”