AUD/USD still seen sidelined – UOB

In opinion of FX Strategists at UOB Group, the Aussie Dollar is expected to continue the ongoing rangebound trade.

Key Quotes

24-hour view: “Instead of threatening the 0.7070 support (as expected last Friday), AUD rebounded to a high of 0.7150 before easing off. The relatively choppy price action offers no fresh clues and with most indicators at ‘neutral’ level, AUD is likely to continue to trade sideways. Expected range for today; 0.7090/0.7140”.

Next 1-3 weeks: “There is not much to add as AUD hardly budged and remains within a 0.7095/0.7160 range since late last week. The underlying tone has weakened somewhat but at this stage, we are comfortable in holding the same view (since last Friday, 12 Oct, spot at 0.7120) wherein AUD is trading within a broad 0.7040/0.7200. From here, 0.7040/0.7160 is likely enough to contain the movement in AUD, at least for the next one week or so”.