AUD/USD still faces rangebound trading – UOB

In opinion of analysts at UOB Group, the Aussie dollar is seen extending its sideline pattern in the next 1-3 weeks.

Key Quotes

“AUD just moved clearly above the strong 0.7455 resistance and improving momentum would likely lead to further upmove to test the major 0.7505/10 level. Short-term pull-back is expected to hold above 0.7415/20 but only a breach of 0.7380 would indicate that a short-term top is in place”.

“AUD is rebounding quickly from the 0.7325 low seen on Monday. While the up-move appears to have scope to extend higher and test the strong 0.7510 resistance, a clear break above this level is not expected. In other words, we are holding on to our neutral view for now and expect AUD to continue to trade choppily within a 0.7305/0.7510 range”.