AUD/USD seen within the 0.6800/0.7050 band so far – UOB

FX Strategists at UOB Group noted AUD/USD is predicted to navigate between 0.6800 and 0.7050 in the short-term horizon.

Key Quotes

24-hour view: “Our view that ‘the rapid advance in AUD could test 0.6980 first before a pullback can be expected’ did not quite turn out the way we anticipated as AUD only touched a high of 0.6977. The subsequent sharp and rapid decline during NY hours that hit a low of 0.6834 appears to be running ahead of itself and further weakness is unlikely. For today, AUD is more likely to consolidate and trade between 0.6835 and 0.6935.”

Next 1-3 weeks: “Last Friday, (12 Jun, spot at 0.6830), we held the view that AUD is in a corrective pullback and could weaken to 0.6730. We highlighted that ‘any decline could be punctuated by bouts of short-term recovery’ AUD dipped to 0.6777 yesterday (15 Jun) and while the subsequent recovery was not unexpected, the pace and extent of the rebound came as a surprise as it took out the 0.6950 ‘strong resistance’ level at the time of writing. Despite the strong rebound, the current AUD strength is not viewed as the resumption of its recent positive phase. From here, AUD is more likely to consolidate and trade between 0.6800 and 0.7050 for a period.”