AUD/USD sticks to the sideline theme near term – UOB
FX Strategists at UOB Group expects the Aussie Dollar to remain sidelined vs. the buck in the near term horizon.
Key Quotes
24-hour view: “The support highlighted at 0.7530/35 yesterday was unthreatened as AUD traded choppily within a 0.7557/0.7595 range. The daily closing is on the ‘soft’ side which suggest a slow drift lower towards 0.7530/35. At this stage, a clear break below this level is not expected. Resistance is at 0.7580 ahead of 0.7600”.
Next 1-3 weeks: “There is no change to the current neutral outlook for AUD. The relatively sharp decline yesterday has weakened the undertone but for now, a clear break below the month-to-date low near 0.7530 seems unlikely. Overall, we continue to expect further range trading albeit likely at a lower and narrower range of 0.7530/0.7650 (instead of 0.7550/0.7695 expected previously)”.