AUD/USD entering in a consolidative stage – UOB

In view of FX Strategists at UOB Group, the Aussie Dollar could stay rangebound in the near term.

Key Quotes

“We highlighted the diminished odds for further AUD weakness in recent updates and the breach of the 0.7835 stop-loss was not surprising (high of 0.7836)”.

“AUD has likely made a short-term low at 0.7733 last week and the current price action is viewed as part of a correction/consolidation phase”.

“From here, there is room for a probe higher towards the top of the expected 0.7770/0.7900 consolidation range but at this stage a clear break above is not expected. Positioning wise, we have exited the short position from 0.7930 (see update on 22 Sep) at an average rate of 0.7805 (profit of 1.58%)”.