AUD/USD sticks to the consolidative theme – UOB

In opinion of FX Strategists at UOB Group, AUD/USD is expected to trade between 0.7645 and 0.7820 in the next weeks.

Key Quotes

24-hour view: “We expected AUD to ‘test 0.7775’ yesterday but we were of the view ‘a clear break of this level is unlikely’. The subsequent AUD strength exceeded our expectations as it rose to a high of 0.7793. While the advance appears to be running ahead of itself, AUD could test 0.7820 first before easing. The next resistance at 0.7860 is not expected to come into the picture. On the downside, a break of 0.7735 (minor support is at 0.7755) would indicate the current upward pressure has eased.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (11 Mar, spot at 0.7740). As highlighted, the current movement is viewed as a consolidation phase and AUD is likely to trade within a 0.7645/0.7820. That said, shorter-term momentum has improved somewhat and AUD could edge above 0.7820 but only a clear break of 0.7860 would indicate that AUD is ready to move higher on a sustained basis.”