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AUD/USD could extend the rangebound trading between 0.6990 and 0.7300 in the next weeks, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “AUD surged and closed at 0.7162 before popping briefly to a high of 0.7223 this morning. The rapid rise and equally fast retreat has resulted in a mixed outlook. Further volatile price actions would not be surprising but AUD is unlikely to move much out of the expected range of 0.7030/0.7250.”

Next 1-3 weeks: “Our latest narrative was from Monday (02 Nov, spot at 0.7015) wherein AUD ‘could weaken but the major and solid support at 0.6930 may not come into the picture so soon, if at all’. That said, we did not quite anticipate the ease by which AUD blew past the ‘strong resistance’ level at 0.7100. AUD popped to a high of 0.7223 earlier this morning but has since retreated. The volatile price actions have resulted in a mixed outlook. From here, AUD could trade in a choppy manner but is likely to stay between the two major levels of 0.6990 and 0.7300.”