According to FX Strategists at UOB Group, AUD/USD could now trade within the 0.7070/0.7200 range in the next weeks.

Key Quotes

24-hour view: “We expected AUD to ‘trade sideways within a range of 0.7100/0.7140’ yesterday. AUD subsequently traded between 0.7107 and 0.7147 before settling on a firm note at 0.7146 (+0.28%). The improved underlying tone suggests AUD is likely to trade with an upward bias for today. However, any advance is expected to face solid resistance at 0.7170. The major resistance at 0.7200 is not expected to come into the picture. Support is at 0.7130 followed by 0.7115.”

Next 1-3 weeks: “On Monday (07 Feb, spot at 0.7075), we held the view that AUD is under mild downward pressure and is likely to trade with a downward bias and test 0.7015. Yesterday (08 Feb), AUD rebounded and took out our ‘strong resistance’ level at 0.7140. The break of the ‘strong resistance’ level indicates that the mild downward pressure has dissipated. From here, AUD is likely to trade sideways for a period of time, expected to be within a range of 0.7070/0.7200.”