In the opinion of UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang, AUD/USD is now predicted to navigate within the 0.6865-0.7055 range in the short-term horizon.

Key Quotes

24-hour view: “We expected AUD to trade sideways between 0.6890 and 0.6970 yesterday. However, AUD rose to 0.7011 and then dropped quickly to end the day at 0.6937 (+0.18%). The sharp but short-lived swings have resulted in a mixed outlook. Further choppy trading is not ruled out, likely between 0.6900 and 0.6995.”

Next 1-3 weeks: “Our update from two days ago (08 Feb, spot at 0.6960) still stands. As highlighted, AUD appears to have moved into a consolidation phase and it is likely to trade between 0.6865 and 0.7055 for the time being.”