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 AUD dropped to a low of 0.6750 on Wednesday, we indicated yesterday that “the decline lacks momentum” and we expected AUD to consolidate in a range 0.6750/0.6820. However, AUD spiked to a high of 0.6840 and then dropped back to end the day at 0.6779 (+0.12%). The underlying tone appears to have softened, and today, there is a chance for AUD to dip below 0.6750. In view of the mild downward pressure, a sustained drop below this level is unlikely. The major support at 0.6700 is also unlikely to come into view. Resistance is at 0.6805, followed by 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.