UOB Group’s FX Strategists still see AUD/USD navigating within the 0.7055-0.7210 range in the next weeks.

Key Quotes

24-hour view: “Yesterday, we highlighted that ‘downward pressure has eased’ and AUD ‘is likely to trade sideways within a range of 0.7105/0.7160’. Our view was not wrong as AUD traded between 0.7103 and 0.7156. Further sideway-trading appears likely even though the slightly firmed underlying tone suggests a higher range of 0.7115/0.7175.”

Next 1-3 weeks: “Our latest narrative was from last Friday (11 Feb, spot at 0.7150) where we highlighted that the outlook for AUD appears to be neutral and we expected AUD to trade within a range of 0.7055/0.7240. There is no change in our view even though a 0.7055/0.7210 range is likely enough to contain the price actions for now.”