In the opinion of Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group, AUD/USD should maintain the side-lined trading unchanged for the time being.

Key Quotes

24-hour view: “Last Friday, we expected AUD to trade sideways between 0.6700 and 0.6770. Our view was incorrect as AUD dropped to 0.6678. Downward momentum appears to be building and AUD is likely to trade with a downward bias today. However, any decline is likely to face strong support at 0.6660. The major support at 0.6620 is unlikely to come under threat. On the upside, a break of 0.6730 (minor resistance is at 0.6710) would indicate that the build-up in downward momentum has faded.”

Next 1-3 weeks: “Our most recent narrative was from last Monday (17 Apr, spot at 0.6710). As highlighted, after the recent sharp but short-lived swings, the outlook for AUD is mixed. For the time being, there is no clear direction and AUD could trade in a relatively broad range of 0.6620/0.6785.”