AUD/USD is now seen within the 0.7140-0.7285 range in the next weeks, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “The swift and sharp in AUD to 0.7199 last Friday came as a surprise (we were expecting AUD to consolidate). Further AUD weakness is not ruled but oversold conditions suggest a slower pace of decline and a break 0.7180 is unlikely (next support is at 0.7140). Resistance is at 0.7240 followed by 0.7255.”

Next 1-3 weeks: “Our view for AUD to ‘advance to 0.7335’ was invalidated as AUD dropped below our ‘strong support’ level at 0.7215 on Friday (low of 0.7199). The sharp but short-lived swings have resulted in a mixed outlook. From here, AUD is likely to trade within a range of 0.7140/0.7285.”