UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang see diminishing bets for further weakness in AUD/USD in the short term.

Key Quotes

24-hour view: “We highlighted yesterday that ‘despite the relatively strong bounce, there has been no significant increase in upward momentum and AUD is unlikely to strengthen much further’, and we expected AUD to trade within a range of 0.6715/0.6790. AUD subsequently traded in a relatively quiet manner between 0.6707 and 0.6766. The price actions appear to be consolidative and we expect AUD to trade sideways between 0.6700 and 0.6760 today.”

Next 1-3 weeks: “Our update from yesterday (02 Mar, spot at 0.6755) is still valid. As highlighted, downward momentum is waning rapidly and the odds for AUD to weaken further have diminished considerably. However, only a breach of the ‘strong resistance’ at 0.6800 would confirm that the AUD weakness that started two weeks ago has run its course.”