AUD/USD seen sidelined very near term – UOB

FX Strategists at UOB Group noted the Aussie Dollar is expected to trade in a consolidative fashion in the very near term.

Key Quotes

24-hour view: “We expected AUD to ‘probe’ the 0.7565/70 resistance last Friday but it only managed to touch a high of 0.7560 before easing off quickly. The mild short-term upward pressure appears to have eased and AUD has likely moved into a consolidation phase. In other words, we expect AUD to trade sideways for today, likely within a 0.7495/0.7560 range”.

Next 1-3 weeks: “AUD hit a high of 0.7561 last Friday, not far from the ‘stop-loss’ for our bearish view at 0.7570. The risk of a short-term low has increased further but we prefer to wait for a break of 0.7570 first before shifting to a neutral stance. In the meanwhile, AUD could trade sideways for a couple of days but unless AUD can stay below 0.7485 soon, the risk of a short-term low would increase further”.