AUD/USD seen within the 0.6250-0.6450 range – UOB

In opinion of FX Strategists at UOB Group, AUD/USD is expected to trade within a consolidative fashion between 0.6250 and 0.6450 in the short-term horizon.

Key Quotes

24-hour view: “Our expectation for AUD to ‘drift lower to 0.6275’ was wrong as it staged a surprisingly robust rebound that touched 0.6407 during NY hours. The rapid rise appears to be running ahead of itself and for today, further AUD strength is unlikely. AUD is more likely to consolidate and trade between 0.6300 and 0.6400.”

Next 1-3 weeks: “We have held the same view since last Thursday (16 Apr, spot at 0.6300) wherein ‘a short-term top is in place’ and that ‘the pullback in AUD could extend to 0.6170’. After AUD dropped to 0.6254, we highlighted on Wednesday (22 Apr, spot at 0.6285) that ‘downward momentum has not improved by all that much and 0.6170 may not come into the picture so soon’. That said, the strong bounce in AUD yesterday that easily took out the “strong resistance’ level at 0.6370 was not exactly expected (AUD soared to an overnight high of 0.6407). The outlook for AUD is mixed from here and it could trade between 0.6250 and 0.6450 for a period.”