FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang now expect AUD/USD to trade between 0.6885 and 0.7035 in the near term.

Key Quotes

24-hour view: “We expected AUD to ‘trade sideways within a range of 0.6920/0.6970 yesterday’. AUD subsequently traded within a higher range than expected (0.6936/0.6988). The price actions still appear to be part of a consolidation and we expect AUD to trade between 0.6930 and 0.6985 for today.”

Next 1-3 weeks: “Two days ago (03 Aug, spot at 0.6900), we held the view that AUD is likely to trade with a downward bias towards 0.6840. Since then, AUD has not been able to make any headway on the downside. While our ‘strong resistance’ level at 0.6990 is not taken out (high of 0.6988 yesterday), downward momentum has fizzled out. From here, AUD is likely to consolidate and trade between 0.6885 and 0.7035.”