AUD/USD now seen within 0.7210-07320 – UOB

In light if the recent price action, AUD/USD is now expected to trade between 0.7210 and 0.7320 in the next weeks.

Key Quotes

24-hour view: “We highlighted last Friday that ‘the rebound in AUD has room to extend but a clear break of the strong resistance at 0.7265 is unlikely’. However, AUD rose to 0.7276 before closing on a firm note at 0.7268 (+0.57%). Despite the relatively strong rebound, upward momentum has not improved by much. That said, there is room for AUD to test 0.7295. The major resistance at 0.7325 is not expected to come into the picture. Support is at 0.7260 followed by 0.7240.”

Next 1-3 weeks: “We have expected a weaker AUD since the middle of last week. In our narrative from last Friday (01 Oct, spot at 0.7235), we highlighted ‘a break of 0.7265 would indicate that the current weakness is not ready to move to 0.7155 just yet’. AUD subsequently took out 0.7265 as it rose to 0.7276 during NY session. Downward momentum has more or less dissipated and the weak phase is deemed to have ended. AUD has likely moved into a consolidation phase and is expected to trade between 0.7210 and 0.7320 for now.”