In opinion of FX Strategists at UOB Group, the upside momentum in AUD/USD could be losing momentum, signalling that further consolidation could be in store in the very near term.

Key Quotes

24-hour view: “Our expectations for AUD to ‘trade sideways between 0.7150 and 0.7200’ yesterday were incorrect as it soared to 0.7249 before plummeting back down. AUD traded on a soft note during early Asian hours and the risk is on the downside. That said, any weakness is unlikely to break the major support at 0.7110. Resistance is at 0.7175 followed by 0.7210.”

Next 1-3 weeks: “Yesterday (10 Feb, spot at 0.7180), we highlighted that upward momentum is beginning to build but AUD has to close above 0.7200 before a sustained advance is likely. We did not anticipate the surge to 0.7249 during NY session and the subsequent sharp drop (AUD closed at 0.7169, -0.17%). The build-up in momentum has dissipated. The outlook appears neutral and AUD could trade within a broad range of 0.7055/0.7240 for now.”