Australian Dollar: Neutral within broader downtrend against US Dollar – UOB

United Overseas Bank’s (UOB) Quek Ser Leang notes AUD/USD has slipped into a tight consolidation after a strong rebound to 0.6930, trading between 0.6883 and 0.6921 and closing at 0.6894. He expects intraday range trading between 0.6880 and 0.6915. Over 1–3 weeks, the pair is seen neutral in a 0.6870–0.6980 band, but the 1–3 month view remains negative toward 0.6707 below 0.6835.

Aussie capped in tight ranges

"24-HOUR VIEW: Two days ago, AUD rebounded strongly to 0.6930. When it was at 0.6915 in the early Asian session yesterday, we highlighted that “the rebound appears to be running ahead of itself, and instead of continuing to rebound, AUD is more likely to trade at these higher levels, expected to be between 0.6890 and 0.6930.” AUD then traded within a lower range of 0.6883/0.6921. The price movements still appear to be part of a range-trading phase, and we expect AUD to trade between 0.6880 and 0.6915 today."

"1-3 WEEKS VIEW: Yesterday (01 Jul, spot at 0.6915), we revised our AUD view from negative to neutral. We noted that “downward momentum has faded,” and we indicated that AUD “is likely to trade between 0.6870 and 0.6980 for the time being.” While the subsequent pullback has resulted in a slight increase in the short-term downward momentum, we will maintain our neutral view for now."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)