AUD/USD moved into a consolidative phase – UOB

AUD/USD is seen trading between 0.7050 and 0.7250 in the next weeks, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our view for AUD to ‘drift lower’ last Friday was incorrect as it rose to a high of 0.7175 before ending the day at 0.7171 (+0.27%). AUD opened on firm note this morning and the improved upward momentum suggests further AUD strength towards 0.7210. For today, the major resistance at 0.7250 is not likely to be challenged. Support is at 0.7160 followed by 0.7140.”

Next 1-3 weeks: “We have held the same view since Tuesday (11 Aug, spot at 0.7150) wherein AUD has moved into a consolidation phase and is expected to trade between 0.7050 and 0.7250. AUD subsequently traded well within the expected range. The price action offers no fresh clues and we continue to expect AUD to trade between 0.7050 and 0.7250.”