AUD/USD now seen within 0.6760-0.6930 – UOB

AUD/USD seems to have now embarked on a consolidation theme between 0.6760 and 0.6930 in the next week, suggested FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.

Key Quotes

24-hour view: “Our view for AUD to ‘dip below 0.6760’ yesterday was incorrect as it rebounded to a high of 0.6848. While upward momentum has barely improved, the rebound could extend but any advance is unlikely to break 0.6900 (minor resistance is at 0.6865). On the downside, a break of 0.6810 (minor support is at 0.6825) would indicate that the current mild upward pressure has eased.”

Next 1-3 weeks: “We have held a negative AUD view since late last week. As AUD declined, we highlighted on Wednesday (06 Jul, spot at 0.6805) that while downward momentum has not improved by much, the risk for AUD is still on the downside. We added, ‘only a break of 0.6865 would indicate that the weak phase in AUD has run its course’. AUD rebounded to a high of 0.6848 during NY session and while our ‘strong resistance’ level at 0.6865 is still intact, downward pressure has eased. In other words, the weak phase in AUD has ended. From here, AUD is likely to trade sideways between 0.6760 and 0.6930.”