AUD / USD is expected to remain in the 0.7130-0.7260 range for the next few weeks, FX strategists at UOB Group noted.
24 hour view: “The AUD traded between 0.7150 and 0.7198 yesterday, narrower than our expected sideways trading range of 0.7140 / 0.7200. The upward momentum is starting to pick up as the AUD closed on a relatively firm note at 0.7195 (+ 0.47%). For today, the AUD is expected to strengthen but given the emerging improvement in momentum, any lead is unlikely to go clearly above 0.7230 (next resistance is at 0.7260) . Support is at 0.7170, but only a move below 0.7150 would indicate that the current upward pressure has eased. “
Next 1-3 Weeks: “Last Thursday (August 20, spot at 0.7190) we estimated that the AUD should trade sideways in a range of 0.7100 / 0.7260 for a while. We detected a slight uptick in the downward momentum two days ago and indicated that “the prospect for the AUD to move down the range first is greater”. However, over the past two days, the AUD has traded relatively calmly (around 0.7150 to 0.7200). The build-up of bearish momentum quickly died down and from there the AUD could continue to trade sideways, possibly in a range of 0.7130 / 0.7260 (narrowed from 0.7100 / 0.7260) for a while.