AUD/USD faces some consolidation within 0.7140-0.7285 – UOB

AUD/USD is predicted to keep the range bound theme between 0.7140 and 0.7285 in the near term, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “We highlighted yesterday that AUD ‘could edge higher to 0.7260’ but we were of the view that ‘0.7285 is unlikely to come into the picture’. While our view was not wrong as AUD rose to 0.7275, we did not expect the swift and sharp pullback from the high (low has been 0.7207). The pullback has room to extend but any weakness is expected to encounter solid support at 0.7170. Resistance is at 0.7225 followed by 0.7240.”

Next 1-3 weeks: “We have held the same view since Monday (17 Jan, spot at 0.7210) where the outlook for AUD is mixed and it is likely to trade within a range of 0.7140/0.7285. There is no change in our view as AUD rose to 0.7275 yesterday (20 Jan) before pulling back. The underlying tone has weakened somewhat but at this stage, the bottom of our expected range at 0.7140 is unlikely to come under threat.”