According to FX Strategists at UOB Group, the Aussie Dollar should remain within familiar ranges in the near term horizon.
Key Quotes
24-hour view: “Expectation for further AUD weakness was wrong as it rebounded strongly after touching a low of 0.7348. The rebound appears to be running ahead of itself even though there is scope for a test of the 0.7420 resistance. At this stage, a sustained break above this level is note expected. Support is at 0.7375 followed by last Friday’s low near 0.7350″.
Next 1-3 weeks: “AUD recovered most of its loss made earlier last week as it rebounded strongly and closed on a firm note last Friday (NY close of 0.7397, +0.46%). The price action was not surprising as we indicated on Friday “we do not detect a significant improvement in downward pressure”. From here, we continue to hold same view that AUD is caught in a broad range and is expected to trade sideways between 0.7310 and 0.7485″.
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