AUD/USD: Further range bound likely near term – UOB

AUD/USD is now expected to trade between 0.6625 and 0.6735 in the next few weeks, suggest Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia at UOB Group.

Key Quotes

24-hour view: “Our expectation for AUD to edge higher last Friday did not materialize as it traded between 0.6672 and 0.6738. AUD dropped sharply in early Asian trade today and could test 0.6645. The next support level at 0.6625 is not expected to come under threat. Resistance is at 0.6695, followed by 0.6710.”

Next 1-3 weeks: “We highlighted last Friday (31 Mar, spot at 0.6715) that while upward momentum has improved somewhat, AUD has to break clearly above 0.6760 before a sustained advance is likely. AUD subsequently rose to 0.6738 and then fell sharply. The build-up of upward momentum has faded. AUD is likely to trade in a range for the time being, expected to be between 0.6625 and 0.6735.”