AUD/USD neutral stance points to further rangebound – UOB

The outlook on the Aussie dollar in the near term has shifted to the neutral side, signalling a continuation of the sideline theme between 0.7300 and 0.7510.

Key Quotes

“AUD traded mostly sideways and the outlook for the day is mixed. That said, the immediate bias is tilted to the upside but any up-move is expected to face stiff resistance at the 0.7445/50 high seen on Wednesday”.

“We just turned neutral on AUD yesterday and there is no change to the view. The current movement is viewed as the early stages of a consolidation phase and we expect this pair to trade sideways for now, likely within a 0.7300/0.7510 range. Looking further ahead, only a clear break below 0.7300 would indicate that the bearish phase has resumed”.

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