FX Strategists at UOB Group suggested the Aussie Dollar is expected to trade within a sideline theme in the next weeks.
24-hour view: “We indicated last Friday “the rebound in AUD has scope to extend higher but strong resistance is expected at 0.7155”. However, the strong resistance was unthreatened as AUD eased off quickly after touching a high of 0.7140. Upward pressure has waned and AUD has likely moved into a consolidation phase. In other words, we expect AUD to trade sideways for today, likely between 0.7080 and 0.7135”.
Next 1-3 weeks: “AUD traded in a relatively narrow range last Friday and ended the day largely unchanged (NY close of 0.7117, -0.09%). The price action reinforces our view wherein we expect AUD to trade sideways in the coming days, likely within a 0.7040/0.7200 range. Looking ahead, the current price action seems to suggest that AUD is attempting to base out but this process could take up to a few weeks”.
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