AUD/USD: correcting, not reversing - UOB

FXStreet (Guatemala) - Analysts at UOB group explained that in line with expectations, AUD struggled to move above the strong resistance indicated at 0.7140/45 last Friday but the subsequent sharp drop from the high of 0.7142 was unexpected.

Key Quotes:

"Despite the rapid down-move from the high, the current movement is likely part of a broader consolidation phase and not the start of a sustained down-move. Expect range trading, likely between 0.7040 and 0.7115.

As mentioned last Friday, despite improving momentum, only a daily closing above 0.7110 would indicate the start of a sustained up-move in AUD.

In the meanwhile, this pair is expected to trade sideways, albeit with a positive tone with strong support at 0.7005/10."