AUD/USD further sideline expected – UOB

FX Strategists at UOB Group expect the Aussie Dollar to extend its consolidative theme likely between 0.7540 and 0.7690 in the next weeks.

Key Quotes

“In line with expectation, AUD took a dip but the down-move was thwarted by the support indicated at 0.7570 yesterday (exact low of 0.7570). The rapid rebound from the low suggests that downward pressure has eased but it is premature to expect a strong recovery. AUD is more likely to trade sideways to slightly higher from here”.

“We just shifted to a neutral stance yesterday and there is no change to the view. The post-RBA decline is viewed as part of a broader consolidation phase and not the start of a major bearish reversal. AUD is expected trade sideways from here, likely within a broad 0.7540/0.7690 range”.