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AUD/USD is now forecasted to navigate within the 0.7200-0.7350 range in the next weeks, in opinion of FX Strategists at UOB Group.

Key Quotes

24-hour view: “Yesterday, we held the view that AUD ‘could edge higher but a sustained advance above 0.7315 appears unlikely’. AUD subsequently popped to a high of 0.7325 before dropping back down quickly. Momentum indicators appear to be “neutral” for now and AUD is likely to consolidate and trade between 0.7235 and 0.7305.”

Next 1-3 weeks: “We highlighted on Wednesday (09 Sep, spot at 0.7215) that AUD ‘is under mild downward pressure and is likely to trade with a downward bias towards 0.7150’. We added, ‘the current mild downward pressure is deemed as intact unless AUD moves back above 0.7295 within these few days’. AUD rose to a high of 0.7325 yesterday (10 Sep) and despite closing on a soft note at 0.7257 (-0.36%), downward momentum has more or less dissipated. To look at it another way, the current movement in AUD is viewed as part of a consolidation phase and it could trade between 0.7200 and 0.7350 for a period of time.”