UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang note price action in AUD/USD is now seen within the 0.6865-0.7055 range in the next few weeks.

Key Quotes

24-hour view: “We highlighted yesterday that AUD could rise to 0.7000 first before the risk of a pullback increases. We added, ‘The major resistance at 0.7055 is not expected to come under threat’. AUD soared briefly to 0.7030, dropped to 0.6922 before ending the day at 0.6985 (+0.27%). We view the price actions as part of a broad consolidation range and expect AUD to trade between 0.6930 and 0.7015 today.”

Next 1-3 weeks: “Our view from one week ago (08 Feb, spot at 0.6960) is still valid. As highlighted, AUD is in a consolidation phase and it is likely to trade between 0.6865 and 0.7055 for now.”