AUD/USD extends its rangebound theme near term – UOB

The research team at UOB Group expects AUD/USD to extends its consolidative pattern for the next 1-3 weeks.

Key Quotes

“Instead of trading sideways as expected, AUD broke the 0.7660 support and dropped to a low of 0.7608. The rapid and strong rebound from the low suggests that AUD is trying to form a short-term base for a recovery”.

“AUD dipped to a low of 0.7608 yesterday, holding just above the 0.7595 support. Despite the sharp drop, the current movement is still considered as part of a broader neutral consolidation phase. In other words, we expect further broad range trading for now, likely within a 0.7595/0.7760 range”.