AUD/USD faces consolidation between 0.6800 and 0.7050 – UOB

The Aussie Dollar is expected to trade within a rangebound theme vs. the greenback, likely between 0.6800 and 0.7050, in the next weeks, in opinion of FX Strategists at UOB Group.

Key Quotes

24-hour view: “AUD traded between 0.6836 and 0.6903 yesterday, relatively close to our expected range of 0.6835/0.6915. While further consolidation would not be surprising, the underlying tone has weakened somewhat and this could translate into a slightly lower trading range of 0.6825/0.6900.”

Next 1-3 weeks: “There is not much to add to our view from Tuesday (16 Jun, spot at 0.6940). As highlighted, the short-term AUD strength is not viewed as the resumption of the recent positive phase in AUD. The movement is deemed to be part of a consolidation phase and AUD is expected to trade between 0.6800 and 0.7050 for a period.”