AUD/USD has likely moved to a consolidative phase – UOB

AUD/USD is now expected to navigate within the 0.7220-0.7330 range for the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our expectations for AUD to ‘strengthen further’ was incorrect as it dropped to 0.7237 before closing on a soft note at 0.7257 (-0.54%).The rapid drop appears to be running ahead of itself and AUD is unlikely to weaken further. For today, AUD is more likely to trade sideways between 0.7245 and 0.7295.”

Next 1-3 weeks: “Last Friday (24 Sep, spot at 0.7310), we indicated that the recent weak phase in AUD has ended and we expect the rebound in AUD to extend to 0.7360. Our expectation was proven wrong quickly as AUD dropped and cracked our ‘strong support’ level at 0.7245 (low of 0.7237). The price actions suggest that AUD is in a broad consolidation range and is likely to trade between 0.7220 and 0.7330 for now.”