AUD/USD is now expected to trade within the 0.6400-0.6630 range in the next few weeks, comment Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group’s Global Economics & Markets Research.

Key Quotes

24-hour view: “Yesterday, we held the view that ‘the rapid rise in AUD could extend to 0.6550 but in view of the overbought conditions, a sustained rise above this level is unlikely’. Our view was not wrong as AUD popped to a high of 0.6547 in Asian trade before trading choppily for the rest of the sessions. The price movement is viewed as part of a consolidation and we expect AUD to trade between 0.6450 and 0.6540 for today.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (04 Oct, spot at 0.6515). As highlighted, the recent 3-week weakness in AUD has stabilized and AUD is likely to consolidate and trade between 0.6400 and 0.6630 for the time being.”