In opinion of FX Strategists at UOB Group, AUD/USD remains locked within the 0.6800/0.7010 range.
Key Quotes
24-hour view: “Yesterday, we held the view that AUD ‘could extend its gain but a break of 0.6975 appears unlikely’ AUD subsequently plummeted to 0.6858 before snapping back up and rose to an overnight high of 0.6974. While upward momentum still appears to be strong and AUD could move above 0.6975 from here, it is left to be seen if it can maintain a toe-hold above this level. For today, the next resistance at 0.7010 is unlikely to come into the picture. Support is at 0.6910 followed by 0.6880.”
Next 1-3 weeks: “There is not much to add to our update from yesterday (23 Jun, spot at 0.6920). As highlighted, the recent downward pressure has dissipated and from here, AUD is expected to consolidate and trade between 0.6800 and 0.7010. Looking forward, the upside risk appears to be greater but AUD has to close above 0.7030 in order to indicate that it is ready to move above the 0.7067 peak registered earlier this month.”
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