AUD/USD looks consolidative near term – UOB

In the opinion of UOB Group’s Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia, AUD/USD seems to have now moved into a consolidative phase.

Key Quotes

24-hour view: We expected AUD to trade in a range of 0.6405/0.6450 yesterday. However, it edged lower to 0.6388 before settling at 0.6398 (-0.40%). Downward pressure is increasing, albeit slightly. Today, AUD could weaken, but it is unlikely to threaten the major support at 0.6355 (minor support is at 0.6370). Resistance is at 0.6410, followed by 0.6425.

Next 1-3 weeks: Our latest narrative was from last Friday (22 Sep, spot at 0.6410), wherein AUD appears to have entered a consolidation phase, and it is likely to trade between 0.6355 and 0.6480 for the time being. There is no change in our view.