According to UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang, AUD/USD is now predicted to navigate within the 0.6960-0.7130 range in the short-term horizon.

Key Quotes

24-hour view: “We highlighted yesterday that ‘downward momentum has improved a tad and the bias for AUD is on the downside’. We added, ‘As momentum is not strong for now, any decline is unlikely to challenge the major support at 0.6995’. AUD weakened more than expected as it dropped to a low of 0.6988. The decline was however short-lived as AUD rebounded to end the day little changed at 0.7054 (-0.09%). The rebound amid oversold conditions suggests AUD is unlikely to weaken further. Today, AUD is more likely to trade sideways between 0.7010 and 0.7090.”

Next 1-3 weeks: “Our update from yesterday (31 Jan, spot at 0.7060) is still valid. As highlighted, AUD appears to have entered a consolidation phase and it is likely to trade within a range of 0.6960/0.7130 for now.”