AUD/USD seen within 0.7630/0.7770 – UOB

In view of FX Strategists at UOB Group, the Aussie Dollar is expected to trade within a 0.7630/0.7770 range in the near term.

Key Quotes

24-hour view: “We highlighted yesterday that “a dip to 0.7665 is not ruled out” but “a move below 0.7640” seems unlikely. AUD hit an overnight low of 0.7650 and the lack of a significant recovery suggests that the immediate bias is on the downside. That said, 0.7630 is a major support and is unlikely to yield so easily (next support is at 0.7600). On the upside, only a move back above 0.7700 would indicate that the current weakness has stabilized (minor resistance is at 0.7680)”.

Next 1-3 weeks: “In the latest update on Wednesday last week (28 Mar, 0.7680), we highlighted that “a dip below the expected 0.7650/0.7820 consolidation range is not ruled out but at this stage, the prospect for a sustained decline towards the major 0.7600 support is rather low”. AUD subsequently dipped to a low of 0.7643 before rebounding quickly. The price action reinforces our current view and there is no change to our neutral stance. The recent downward bias is easing and but it is too early to expect a sustained recovery. To put it another way, we continue to expect AUD to trade sideways for now, albeit likely within a narrower and lower range of 0.7630/0.7770”.