AUD/USD stays side-lined between 0.7320 and 0.7450 – UOB

UOB Group’s FX Strategists suggested AUD/USD is still seen navigating within the 0.7320-0.7450 band in the near term.

Key Quotes

24-hour view: “We expected AUD to strengthen yesterday but we were of the view that the ‘strong resistance at 0.7395 is unlikely to come under threat’. However, AUD rose to 0.7397 before closing on a firm note at 0.7384 (+0.33%). The advance appears to be running ahead of itself and but there is room for AUD to test 0.7415. A break of the major resistance at 0.7450 would come as a surprise. Support is at 0.7370 followed by 0.7350.”

Next 1-3 weeks: “Yesterday (21 Jul, spot at 0.7335), we highlighted that ‘downward momentum has waned somewhat but only a break of 0.7395 would indicate that 0.7270 is out of reach this time round’. AUD subsequently breached 0.7395 as it rose to 0.7397. Downward pressure has more or less dissipated and from here, AUD could trade between 0.7320 and 0.7450 for period of time.”