AUD/USD seen range bound – UOB

According to FX Strategists at UOB Group, the Aussie Dollar is likely to keep the sideline term in the very near term.

Key Quotes

24-hour view: “We highlighted last Friday that the major 0.7440 support is likely "out of reach". However, AUD dipped briefly to touch 0.7733 before rebounding quickly. While a short-term low is likely in place, it is too early to expect a sustained recovery. AUD is more likely to trade sideways at these lower levels, likely between 0.7745 and 0.7805”.

Next 1-3 weeks: “last Friday (06 Sep), we highlighted the improved odds for further downside extension but were of the view that the solid support at 0.7740 would not be easy to crack. AUD managed to dip below this level but rebounded quickly after touching a low of 0.7733 during NY hours on Friday. The next support is at 0.7700 followed by 0.7650. Only a move back above 0.7835 (stop-loss adjusted from 0.7880) would indicate that the bearish phase that started about 2 weeks ago has ended. Positioning wise, we have exited the short position from 0.7930 at average rate of 0.7805 (for a profit of 1.58%).