AUD/USD is expected to remain within the 0.7130-0.7260 range in the next weeks, noted FX Strategists at UOB Group.
24-hour view: “AUD traded between 0.7150 and 0.7198 yesterday, narrower than our expected sideway-trading range of 0.7140/0.7200. Upward momentum is beginning to pick up as AUD closed on a relatively firm note at 0.7195 (+0.47%). For today, AUD is expected to strengthen but in view of the nascent improvement in momentum, any advance is unlikely to move clearly above 0.7230 (next resistance is at 0.7260). Support is at 0.7170 but only a move below 0.7150 would indicate the current upward pressure has eased.”
Next 1-3 weeks: “Last Thursday (20 Aug, spot at 0.7190), we held the view that AUD is expected to trade sideways within a 0.7100/0.7260 range for a period of time. We detected a slight uptick in downward momentum two days ago and indicated that ‘prospect for AUD to move towards the bottom of the range first is greater’. However, for the last couple of days, AUD traded in a relatively quiet manner (roughly between 0.7150 and 0.7200). The build-up in downward momentum fizzled out quickly and from here, AUD could continue to trade sideways, likely within a 0.7130/0.7260 range (narrowed from 0.7100/0.7260) for a while more.”
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