AUD/USD remains stuck within the 0.6270-0.6405 range – UOB

In the opinion of UOB Group’s Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia, AUD/USD keeps pointing to further side-lined trade for the time being.

Key Quotes

24-hour view: Our view for AUD to trade sideways between 0.6300 and 0.6355 last Friday was incorrect. Instead of trading sideways, AUD rose to 0.6368 before easing to close at 0.6334 (+0.19%). Despite the advance, there is no clear increase in upward momentum, and AUD is unlikely to advance much further. Today, AUD is more likely to trade sideways between 0.6315 and 0.6370. 

Next 1-3 weeks: Last Thursday (26 Oct, spot at 0.6285), we held the view that the risk for AUD has swung to the downside, towards 0.6230. On Friday, AUD rebounded above our ‘strong resistance’ level of 0.6360 (high has been 0.6368). The breach of the ‘strong resistance’ level indicates that our view is incorrect. The current price action is likely part of a broad trading range, probably between 0.6270 and 0.6405.