Australian Dollar (AUD) is likely to consolidate in a range of 0.6420/0.6470 vs US Dollar (USD). In the longer run, for the time being, AUD is expected to trade in a range of 0.6380/0.6485, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
AUD to range trade in the coming days
24-HOUR VIEW: “Yesterday, when AUD was at 0.6420, we stated that AUD ‘could edge below 0.6400.’ However, we were of the view that ‘the next support at 0.6380 is unlikely to come under threat.’ Our expectations did not turn out as expected, as AUD traded between 0.6408 and 0.6459. The price movements appear to be part of a consolidation phase, even though the firmer underlying tone suggests AUD is likely to trade in a higher range of 0.6420/0.6470 today.”
1-3 WEEKS VIEW: “Our update from two days ago (28 May, spot at 0.6450), is still valid. As highlighted, for the time being, AUD is expected to trade in a range of 0.6380/0.6485.”
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