FX Strategists at UOB noted AUD/USD still faces further consolidation in the next weeks.
Key Quotes
24-hour view: “AUD traded between 0.7349 and 0.7409 last Friday, wider than our expected sideway-trading range of 0.7350/0.7400. The underlying tone has softened somewhat and this could lead to AUD edging lower but any weakness is not expected to challenge the major support at 0.7320 (there is another support at 0.7340). Resistance is at 0.7385 followed by 0.7410.”
Next 1-3 weeks: “Our view from late last week still stands. As highlighted, AUD is likely to consolidate and trade within a 0.7320/0.7460 range. Looking ahead, only a daily closing below 0.7320 would indicate the start of a deeper pullback. At this stage, the prospect for AUD to close below 0.7320 is not high.”
