AUD/USD neutral, likely between 0.7475 and 0.7600 – UOB

FX Strategists at UOB Group keep neutral on the Aussie Dollar, expecting it to gravitate between 0.7475 and 0.7600 vs. the greenback in the near term.

Key Quotes

“Instead of trading sideways as expected, AUD dipped to an overnight low of 0.7533 before recovering. The deep pullback appears to have room to stage another test of 0.7530/35 but based on the lackluster momentum, a move below 0.7500 is not expected. In other words, allow for a dip to 0.7530/35 but 0.7500 is expected to hold for a stronger rebound to 0.7585”.

“AUD has likely made a short-term top at 0.7612 on Monday (17/4) and the ‘rebound target’ indicated previously at 0.7630 is not met. This pair has likely moved into a consolidation phase and is expected to trade between 0.7475 and 0.7600 for now. That said, the immediate bias is for a probe lower towards the bottom of the expected consolidation range”.