AUD/USD: Further side-lined trading in the pipeline – UOB

In the opinion of Markets Strategist Quek Ser Leang and Economist Lee Sue Ann at UOB Group, AUD/USD faces extra range bound in the near term, likely between 0.6190 and 0.6390.

Key Quotes

24-hour view: “We highlighted yesterday that AUD ‘could edge lower but is not expected to challenge the major support at 0.6190’. We added, ‘There is another support at 0.6230’. We were not expecting such erratic price movements as AUD dropped to 0.6229, surged to 0.6357, and then fell back to close at 0.6283 (+0.20%). The volatile movement has resulted in a mixed outlook and AUD could continue to trade in a choppy manner, with the expected range being between 0.6230 and 0.6330.”

Next 1-3 weeks: “Our latest narrative from Tuesday (18 Oct, spot at 0.6295) still stands. As highlighted, AUD is likely to consolidate and trade between 0.6190 and 0.6390 for the time being.”