In opinion of FX Strategists at UOB Group, AUD/USD is expected to extend the ongoing consolidation in the next weeks.
Key Quotes
24-hour view: “Our expectation for AUD to ‘probe the 0.6490 resistance’ did not materialize as it dropped to 0.6402 after touching 0.6473. The quick bounce off the low suggests limited downside risk for today. From here, AUD could retest the 0.6475 level but a break of the next resistance at 0.6500 is unlikely. Support is at 0.6420 followed by 0.6400.”
Next 1-3 weeks: “There is not much to add to our update from Wednesday (13 May, spot at 0.6455). As highlighted, while AUD could edge lower, any weakness is unlikely to be ‘one-way’. In other words, while the bias is titled the downside, the current movement is viewed as part of a broad 0.6370/0.6570 range.”
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