AUD/USD CLINGS TO THE CONSOLIDATIVE PHASE – UOB

AUD/USD faces further side-lined trading in the near term, according to UOB Group’s Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia.

24-hour view: “We expected AUD to trade in a range of 0.6685/0.6735 yesterday. We did not anticipate the sharp but brief rise to 0.6772. The brief advance lacks momentum and AUD is unlikely to strengthen further. Today, AUD is more likely to trade sideways between 0.6700 and 0.6770.”

Next 1-3 weeks: “There is not much to add to our update from Monday (17 Apr, spot at 0.6710). As highlighted, after the recent sharp but short-lived swings, the outlook for AUD is mixed. For the time being, there is no clear direction and AUD could trade in a relatively broad range of 0.6620/0.6785.”