AUD/USD: Further upside unlikely near term – UOB

In opinion of FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang, the upside bias in AUD/USD now seems over and some consolidation should emerge in the next weeks.

Key Quotes

24-hour view: “Our expectations for AUD to ‘edge lower’ last Friday did not materialize as it traded sideways between 0.7473 and 0.7525. Further sideway-trading appears likely, expected to between 0.7465 and 0.7520.”

Next 1-3 weeks: “We have held a positive view in AUD since two weeks now. In our latest narrative from last Friday (01 Apr, spot at 0.7490), we highlighted that AUD has to close above 0.7520 within these 1 to 2 days or the chance for further AUD strength would diminish quickly. AUD subsequently traded between 0.7473 and 0.7525 before closing at 0.7498. Upward momentum has more or less dissipated and the strong phase in AUD has come to an end. AUD appears to have moved into a consolidation phase and is likely to trade between 0.7435 and 0.7540 from here.”