AUD/USD Outlook: UOB Sees Narrow Trading Range For Now

Key Moments

Short-Term Price Action and Intraday View

Strategists Quek Ser Leang and Lee Sue Ann at United Overseas Bank (UOB) assess that AUD/USD remains in consolidation following a short-lived move lower to 0.7111, after which the pair recovered to finish around 0.7130.

In their 24-hour assessment, they noted: “Yesterday, we indicated that AUD ‘is likely to trade between 0.7130 and 0.7180.’ However, AUD dropped to 0.7111 before recovering quickly to close at 0.7129 (-0.45%). The brief decline did not lead to any clear increase in downward momentum, and we continue to expect AUD to trade in a range today, most likely between 0.7110 and 0.7160.”

Near-Term Range Expectations (1-3 Weeks)

From a one to three week perspective, UOB continues to see range-bound behavior for the currency pair. In their latest commentary referenced from Monday (20 Apr, spot at 0.7130), they wrote: “In our most recent narrative from Monday (20 Apr, spot at 0.7130), we highlighted that ‘the current price movements are likely part of a range-trading phase between 0.7060 and 0.7210.’ Since then, AUD traded in a relatively quiet manner. We continue to expect rangetrading, but a narrower range of 0.7080/0.7180 is likely enough to contain the price movements for now.”

Although they foresee continued consolidation in the short to medium term, the strategists maintain a longer-term bias that points lower for AUD/USD.

Projected Trading Ranges