AUD/USD faces extra consolidation between 0.7030-0.7185 – UOB

AUD/USD could extend the side-lined trading between 0.7030 and 0.7185 in the next weeks, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “Yesterday, we held the view that AUD ‘could continue to trade sideways, likely between 0.7100 and 0.7155’. While AUD traded sideways as expected, the range was narrower than expected (0.7116/0.7147). The underlying tone has weakened somewhat and while a dip below 0.7100 is not ruled, the next support t 0.7080 is not expected to come into the picture. On the upside, 0.7155 is still acting as a solid resistance level (minor resistance is at 0.7140).”

Next 1-3 weeks: “AUD traded in a quiet manner over the past few days and for now, we continue to hold the same view as from last Thursday (22 Oct, spot at 0.7110). As highlighted, the movement in AUD is viewed as part of a consolidation phase and AUD is likely to trade between 0.7030 and 0.7185.”