AUD/USD appears to keep the 0.5900-0.6250 range for the time being, suggested FX Strategists at UOB Group.
Key Quotes
24-hour view: “We expected AUD to trade ‘in a relatively quiet manner between 0.6110 and 0.6220’ yesterday. However, AUD dropped sharply to 0.6070, snapped higher quickly and touched a high of 0.6215 (before spending the rest of the sessions trading between 0.6070 and 0.6215). The price action has resulted in a mixed outlook and for today, AUD is expected to trade in an ‘undecided’ manner, likely holding within yesterday’s 0.6070/0.6215 range.”
Next 1-3 weeks: “The relatively quiet price action yesterday came as a surprise. For now, we are holding on to our view from last Friday (27 Mar, spot at 0.5960) wherein AUD could ‘chop around’ within a broad range. However, the decrease in volatility suggests that a 0.5900/0.6250 range (narrowed from 0.5650/0.6250) could contain the movement in AUD for now. Looking forward, a clear break of 0.6250 would indicate that the 0.5510 low posted on 19 Mar could turn out to be a significant bottom.”
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