In the opinion of FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang, AUD/USD has now likely move into a consolidative phase.

Key Quotes

24-hour view: “Yesterday, we highlighted that AUD ‘is likely to trade with a downward bias towards 0.7150’. We added, ‘a clear break of this level is unlikely’. AUD subsequently spiked to a high of 0.7249, dropped to 0.7157 before rebounding to close at 0.7233 (+0.54%). The rebound from the low could extend but a break of the strong resistance at 0.7260 is unlikely. Support is at 0.7195 followed by 0.7170.”

Next 1-3 weeks: “Our update from yesterday (07 Jun, spot at 0.7190) still stands. As highlighted, the recent AUD strength has come to an end and AUD is likely to consolidate and trade between 0.7100 and 0.7260 for now. Looking ahead, the consolidation phase is likely to be resolved by a break above 0.7260. That said, AUD has to close above 0.7285 before a sustained advance is likely.”