According to UOB Group’s Market Strategist Quek Ser Leang and Senior FX Strategist Peter Chia, AUD/USD now looks side-lined within the 0.6600-0.6815 range in the short term.

Key Quotes

24-hour view: “Our expectations for ‘the sharp decline in AUD to extend’ did not materialize as it traded between 0.6681 and 0.6744. The risk still appears to be tilted slightly to the downside even though the major support at 0.6640 is unlikely to come under threat. The downside risk is intact as long as AUD does not move above 0.6740 (minor resistance is at 0.6720).”

Next 1-3 weeks: “We continue to hold the same view as yesterday (06 Dec, spot at 0.6705). As indicated, the recent upward pressure has dissipated and AUD is likely to consolidate between 0.6600 and 0.6815 for the time being.”