AUD/USD expected to stay in consolidation mode – UOB

FX Strategists at UOB Group remain neutral on the Aussie Dollar, while they expect the pair to extend the current consolidative theme in the next weeks.

Key Quotes

24-hour view: “Expectation for a move lower to 0.7630 was wrong as AUD rebounded after touching a low of 0.7652. The up-move was however, short-lived as AUD eased off quickly from a high of 0.7706. The choppy price has resulted in a mixed outlook and we expect AUD to trade sideways from here, likely not moving much out the 0.7652/0.7706 range registered yesterday”.

Next 1-3 weeks: “AUD staged a mild recovery yesterday but eased off quickly after touching a high of 0.7707. The recent mild downward bias is easing but it is too early to expect a sustained rebound. In other words, there is no change to the current neutral outlook and we continue to expect AUD to trade sideways for now, likely within a 0.7630/0.7770 range”.