AUD/USD now seen within 0.7030-0.7185 – UOB

AUD/USD is now expected to navigate between 0.7030 and 0.7185 in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “We noted yesterday that ‘the rapid advance appears to be overdone and further sustained AUD strength is unlikely’ and expected AUD to ‘consolidate and trade between 0.7065 and 0.7135’. AUD subsequently traded between 0.7085 and 0.7125. The underlying tone has firmed somewhat and there is room for AUD to edge upwards to 0.7150 first before a pullback can be expected. For today, the next resistance at 0.7185 is not expected to come under threat. Support is at 0.7100 followed by 0.7070.”

Next 1-3 weeks: “We noted yesterday (21 Oct, spot at 0.7055) that ‘downward momentum has improved, albeit not by much’ and added, we ‘continue to see 0.7005 as a solid support’. That said, we did not rule out a break of 0.7005 ‘as long as the ‘strong resistance’ at 0.7130 is intact’. AUD subsequently surged to a high of 0.7137 during NY hours. The break of 0.7130 indicates that the recent downward pressure has dissipated. The current movement is viewed as the early stages of a consolidation phase and AUD could trade between 0.7030 and 0.7185 for now.”