AUD/USD seen trading within the 0.7660-0.7785 range – UOB

AUD/USD is forecast to navigate between 0.7660 and 0.7785 in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our view for AUD to ‘trade within a range’ last Friday was incorrect as it plunged to 0.7696 before rebounding. The rapid drop is oversold and AUD is unlikely to weaken much further. For today, AUD is more likely to consolidate and trade sideways at these lower levels, expected to be between 0.7700 and 0.7755.”

Next 1-3 weeks: “Last Thursday (29 Apr, spot at 0.7800), we held the view that ‘risk is shifting to the upside but AUD may find it difficult to break the solid resistance at 0.7850’. We did not anticipate the sharp drop on Friday that took out our ‘strong support’ level at 0.7740 (low of 0.7696). The recent choppy price actions have resulted in a mixed outlook. While AUD is expected to trade within a 0.7660/0.7785 range for now, AUD is more likely to test the bottom of the expected range first.”