AUD/USD appears consolidative near term – UOB

FX Strategists at UOB Group remains neutral on the Aussie Dollar in the near term, expecting to trade between 0.7900 and 0.8040 in the next 1-3 weeks.

Key Quotes

24-hour view: “AUD gapped lower this morning, opened at 0.7939, well below last Friday’s NY close of 0.7972. The down-move was quickly reversed and the current rebound from the low has scope to extend higher, even though a clear break above 0.8000 seems unlikely (next resistance at 0.8020). Support is at 0.7950 ahead of the low seen earlier this morning near 0.7930”.

Next 1-3 weeks: “While AUD dipped below the rising trend-line support last Thursday with low of 0.7872, it did not close below the trend-line (condition for a bearish shift was not met). The subsequent strong rebound from the low has not only eased the downward pressure but has shifted it slightly to the upside. That said, the neutral phase that started more than 2 weeks ago is still deemed as intact. However, AUD is more likely to trade sideways for now even though the immediate bias is for a probe higher towards the top of the expected 0.7900/0.8040 consolidation range”.