FX Strategists at UOB Group see the Aussie Dollar navigating within the 0.7250/0.7420 band in the short-term.
Key Quotes
24-hour view: “We were of the view that AUD “still has chance to edge above 0.7360″ but added the “major 0.7380/85 resistance is unlikely to be seriously threatened”. In line with expectation, AUD briefly touched a high of 0.7363 before easing off quickly. The recent mild upward pressure has eased and the current movement is viewed as part of a consolidation phase. That said, the slightly weakened undertone suggests that AUD is more likely to probe the bottom of the expected 0.7305/0.7360 consolidation range first”.
Next 1-3 weeks: “As indicated, despite the relatively strong bounce last Friday, AUD does not appear to be ready to extend its advance in a significant manner. In other words, we expect AUD to trade sideways for now, likely within a 0.7250/0.7420 range”.
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