AUD/USD faces extra rangebound between 0.6850/0.7010 – UOB

AUD/USD continues to move within the 0.6850/0.7010 range for the time being, in opinion of FX Strategists at UOB Group.

Key Quotes

24-hour view: “AUD traded in a quiet manner between 0.6924 and 0.6968 last Friday before settling slightly lower at 0.6951 (-0.19%). The underlying has weakened somewhat and this could lead to AUD drifting lower to 0.6910. The next support at 0.6880 is not expected to come into the picture. Resistance is at 0.6965 but the strong level is at 0.6985.”

Next 1-3 weeks: “In our previous update from last Tuesday (07 Jul, spot at 0.6920), we noted that “upward momentum is beginning to improve but AUD has to close above 0.7010 before further advance can be expected”. AUD subsequently touched 0.7001 on Thursday (09 Jul) before easing off quickly. The build-up in momentum has fizzled out and from here; AUD could consolidate between 0.6850 and 0.7010. Looking forward, AUD has to close out of the range indicated earlier before a more sustained movement can be expected.”