AUD/USD moved into a consolidative phase – UOB
In opinion of FX Strategists at UOB Group, the Aussie Dollar is seen within a sideline theme in the next weeks.
24-hour view: “We highlighted yesterday, “barring a move above 0.6755, AUD is expected to drift lower to 0.6705”. AUD subsequently touched 0.6750 before easing to 0.6723. The prospect for AUD to decline below 0.6705 appears to have dimmed and from here, AUD could trade sideways within a 0.6705/0.6755 range”.
Next 1-3 weeks: “AUD traded in a narrow range and ended the day largely unchanged at 0.6728 (-0.03%). The price action offers no fresh clues and we continue to hold the same view from Monday (07 Oct, spot at 0.6760) wherein AUD is expected to “trade sideways for now”. In other words, AUD is likely to continue to trade between 0.6705 and 0.6805 for a while more. Looking ahead, the downside risk appears to be greater but only a NY closing below 0.6690 would suggest AUD is ready to move below the year-to-date low of 0.6670”.