AUD/USD clings to the side-lined trading near term – UOB

In the opinion of UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang, AUD/USD is expected to navigate within the 0.6620-0.6785 range in the next few weeks.

Key Quotes

24-hour view: “We expected AUD to consolidate in a range of 0.6680/0.6725 yesterday. However, AUD traded in a higher range between 0.6698 and 0.6747. The underlying tone has improved somewhat and AUD is likely to edge higher today, but any advance is not expected to challenge the major resistance at 0.6785 (minor resistance is at 0.6760). On the downside, a breach of 0.6700 (minor support is at 0.6715) would suggest the current mild upward pressure has eased.”

Next 1-3 weeks: “There is not much to add to our update from Monday (17 Apr, spot at 0.6710). As highlighted, after the recent sharp but short-lived swings, the outlook for AUD is mixed. For the time being, there is no clear direction and AUD could trade in a relatively broad range of 0.6620/0.6785.”