In the view of Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group, AUD/USD should trade between 0.6700 and 0.6865 in the next few weeks.
Key Quotes
24-Hour View: After the AUD dropped to a low of 0.6750 on Wednesday, we indicated yesterday that there was “no momentum to the downside” and we expected the AUD to consolidate in the 0.6750/0.6820 range. However, the AUD reached a high of 0.6840 and then bounced back to end the day at 0.6779 (+0.12%). The underlying tone seems to have softened, and today, the AUD has a chance to drop below 0.6750. Given the mild downward pressure, a sustained decline below this level is unlikely. Major support at 0.6700 is also unlikely to be visible. Resistance is at 0.6805, then 0.6825.
Next 1-3 weeks: Our update from yesterday (19 Jul, spot at 0.6775) is still valid. As highlighted, the recent buildup in upward momentum has dissipated. From here, we expect AUD to trade in a range, probably between 0.6700 and 0.6865.
