AUD/USD faces further rangebound – UOB

AUD/USD is likely to move within a consolidative mode in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “AUD edged higher and closed at 0.6839 (+0.19%). The underlying tone has improved somewhat and the immediate bias is tilted to the upside. That said, any advance is unlikely to have enough momentum to move clearly above 0.6865. Support is at 0.6825 followed by 0.6810”.

Next 1-3 weeks: “AUD dipped below our ‘strong support’ level of 0.6815 as it dropped to 0.6810 last Friday (25 Oct). As highlighted in our last update on 23 Oct (spot at 0.6860), a break of the ‘strong support’ would indicate that our view for AUD to move to 0.6895 is wrong. Looking ahead, while further AUD strength is not ruled out, the current consolidation phase could last for a while. In other words, AUD is expected to trade sideways for now, likely between 0.6790 and 0.6880”.