In the opinion of Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group, AUD/USD is still seen navigating the 0.6620-0.6785 range in the near term.

Key Quotes

24-hour view: “Last Friday, we highlighted that AUD could continue to advance. We added, ‘severely overbought conditions suggest that AUD might not be able to break clearly above 0.6820 today’. While AUD rose to a high of 0.6808, it plunged to a low of 0.6595 in NY trade. The outsized decline appears to be overdone but there is scope for the weakness in AUD to extend to 0.6675 before stabilization is likely. The major support level at 0.6620 is not expected to come under threat. Resistance is at 0.6730, followed by 0.6755.”

Next 1-3 weeks: “After AUD surged last Thursday, we highlighted on Friday (14 Apr, spot at 0.6785) that AUD ‘is likely to advance further’.  Our view was proven incorrect as AUD plunged in NY trade and took out our ‘strong support’ level of 0.6700 (low has been 0.6695). The sharp but short-lived swings have resulted in a mixed outlook. For the time being, there is no clear direction and AUD could trade in a relatively broad range of 0.6620/0.6785.”