AUD/USD moved into a consolidation phase – UOB

FX Strategists at UOB Group believes the Aussie Dollar is facing a consolidation period ahead.

Key Quotes

24-hour view: “We expected a higher AUD yesterday but were of the view that “a sustained move above 0.7850 seems unlikely”. AUD touched a high of 0.7839 before staging a surprisingly rapid drop that hit an overnight low of 0.7773. The choppy swing has resulted in a mixed outlook even though weakened undertone suggests that a probe of 0.7755 would not be surprising. At this stage, we do not expect a clear break of this level (next support is at 0.7715). Resistance is at 0.7820 followed by the still rather strong level of 0.7850”.

Next 1-3 weeks: “There is not much to add as AUD traded in a choppy manner for the past few days. The outlook for AUD is deemed as neutral and we view the current movement as part of a consolidation phase. In other words, we expect AUD to continue to trade sideways for now, likely within a 0.7715/0.7880 range”.