AUD/USD is now facing some consolidation – UOB

AUD/USD is now expected to move into a consolidative phase within the 0.6810/0.6910 range.

Key Quotes

24-hour view: “Expectation for AUD to “move above 0.6915” was incorrect as it plummeted from 0.6906 to 0.6848 during NY hours. The decline appears to be running ahead of itself and further sustained weakness is not expected. AUD is more likely to consolidate its loss and trade sideways at these lower levels, expected to be between 0.6840 and 0.6880”.

Next 1-3 weeks: “While our ‘strong support’ level of 0.6845 is still intact (low of 0.6848 last Friday), the weak daily closing at 0.6860 (-0.56%) is enough to indicate that our view for AUD to trade towards 0.6950 is incorrect. The price action was not exactly surprising as we noted last Wednesday (06 Nov, spot at 0.6895) that our “expectation is unlikely to pan out”. From here, the current movement is viewed as part of a consolidation phase and AUD could trade sideways between 0.6810 and 0.6910 for a period”.