AUD/USD remains side-lined for the time being – UOB

AUD/USD is now expected to gyrate around 0.7660 and 0.7785 in the next weeks, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “We highlighted yesterday that ‘the rebound lacks momentum and AUD is unlikely to advance much further’ and we expected AUD to ‘consolidate within a 0.7725/0.7770 range’. However, AUD plummeted briefly to 0.7675 before rebounding quickly. The rapid bounce has room to extend higher but a clear break of 0.7750 is unlikely. Support is at 0.7700 followed by 0.7675. The latter level is acting as a solid support for today.”

Next 1-3 weeks: “We continue to hold the same view as from Monday (03 May, spot at 0.7725). As indicated, the recent choppy price actions have resulted in a mixed outlook and AUD is expected to trade within a 0.7660/0.7785 range for now.”