AUD/USD is expected to remain in a consolidation phase, though a slightly firmer undertone suggests the pair may trade within a higher intraday range of 0.6445–0.6485, according to UOB Group FX strategists Quek Ser Leang and Peter Chia. Longer-term price action still indicates scope for the Australian dollar to retest 0.6405.
Further Range-Trading Likely
24-Hour View:
UOB notes that the AUD dipped to 0.6422 on Friday before rebounding. Yesterday, analysts anticipated that the slowing downside momentum would limit further losses, favouring a day of range-bound trading between 0.6440 and 0.6480. While the actual range was narrower at 0.6442–0.6470, the underlying view remains intact. The pair is now expected to continue consolidating, but with a slightly stronger tone that points to a higher expected range of 0.6445–0.6485.
1–3 Weeks View:
UOB turned bearish on AUD early last week and reiterated on Friday (spot at 0.6450) that the currency could still test 0.6405. Although downside momentum has eased, the analysts maintain this view as long as the strong resistance at 0.6510 remains intact.
