AUD/USD still expected to navigate within the 0.7190-0.7360 – UOB

In opinion of FX Strategists at UOB Group, AUD/USD is forecasted to remain side-lined between 0.7190 and 0.7360.

Key Quotes

24-hour view: “Last Friday, we highlighted that AUD ‘is likely to weaken further to 0.7245’. We added, ‘the next support at 0.7220 is likely out of reach’. While our view was not wrong, the rapid manner by which AUD plummeted to a low 0.7222 before rebounding strongly and swiftly was not exactly expected. The rapid rebound appears to be running ahead of itself but there is room for AUD to edge above 0.7300. The next resistance at 0.7330 is not expected to come into the picture. Support is at 0.7255 followed by 0.7235. The 0.7222 low is likely ‘safe’ for today.”

Next 1-3 weeks: “We highlighted yesterday (03 Sep, spot at 0.7320) that the ‘recent AUD strength has run its course’ and expected AUD to ‘consolidate and trade between 0.7220 and 0.7390’. While we continue to expect AUD to trade sideways for a period of time, the underlying tone has weakened and AUD is likely to trade within a lower range of 0.7190/0.7360.”