AUD/USD: Further rangebound looks likely – UOB

There is still room for the continuation of the consolidative theme around AUD/USD in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “We expected AUD to trade within a 0.6835/0.6895 range yesterday. AUD initially dropped to 0.6833 before making a rapid turnaround and soared to a high of 0.6912. While upward momentum has not improved by much, the rebound has scope to extend higher even though the chance of breaking the strong resistance at 0.6930 is not high. On the downside, support is at 0.6875 followed by 0.6850. The 0.6833 low is not expected to come into the picture.”

Next 1-3 weeks: “We have held the same view since last Tuesday (23 Jun, spot at 0.6920) wherein AUD is expected to consolidate and trade between 0.6800 and 0.7010. The price actions since then were in line with our expectation. At this stage, there are no further clues and AUD could continue to trade sideways for a while more.”