AUD/USD now seen within 0.7200-0.7350 range – UOB

AUD/USD is forecasted to keep the consolidative mood likely between 0.7200 and 0.7350 in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “We highlighted last Friday that ‘momentum appears to be neutral’ and we expected AUD to ‘consolidate and trade between 0.7235 and 0.7305’. AUD subsequently traded within a narrower range than expected (between 0.7254 and 0.7306). Momentum indicators are still mostly neutral and AUD could continue to consolidate for today, likely within a 0.7250/0.7300 range.”

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.”