Outlook is mixed; the Australian Dollar (AUD) could trade sideways between 0.6210 and 0.6280. In the longer run, for the time being, AUD is expected to trade between 0.6180 and 0.6310, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

AUD/USD is set to trade sideways

24-HOUR VIEW: “In a sudden and unexpected move, AUD jumped to a high of 0.6302 yesterday. However, the advance was short-lived, as it pulled back sharply, closing at 0.6246 (+0.51%). The sharp but brief swings have resulted in a mixed outlook. Today, AUD could trade sideways, probably between 0.6210 and 0.6280.”

1-3 WEEKS VIEW: “After the sharp rebound yesterday, AUD may have found an interim bottom at 0.6179 last week. However, as there has been no significant increase in upward momentum, AUD is likely to trade in a range for the time being, expected to be between 0.6180 and 0.6310. Looking ahead, if AUD breaks clearly above 0.6310, it could trigger a more sustained and sizeable recovery.”