AUD/USD consolidative between 0.7865/0.7990 – UOB

FX Strategists at UOB Group believe spot is poised for further consolidation between 0.7865/0.7990 in the near term.

Key Quotes

24-hour view: “Instead of extending lower and test the 0.7895/00 support, AUD rebounded strongly from a low of 0.7906. The unexpectedly robust rebound hit an overnight high of 0.7983. The subsequent rapid pull-back from the high has resulted in a mixed outlook. Further choppy price action is expected, likely not moving much out of the 0.7906/0.7983 range seen yesterday”.

Next 1-3 weeks: “AUD clearly moved above the 0.7960 resistance yesterday to hit a high of 0.7983 before easing off. The risk of break below the rising trend-line support as highlighted in recent updates has diminished. Indicators are mostly ‘neutral’ now and AUD is expected to trade sideways from here, likely within a 0.7865/0.7990 range. Looking further ahead, a clear break 0.7990 would indicate that a move to retest the year’s high near 0.8065 has started. On the downside, the key support is still at 0.7865 but as mentioned above, the odds for a break of this level have diminished”.