AUD/USD: Outlook remains neutral near term – UOB

AUD/USD could extend the range bound theme within 0.7055 and 0.7240 for the time being, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “We highlighted last Friday that ‘the bias is on the downside but any AUD weakness is unlikely to break 0.7110’. However, AUD dipped to 0.7109, rebounded to 0.7184 before dropping back down to close at 0.7137 (-0.45%). Despite the relatively choppy price actions, the underlying tone appears to have softened. From here, AUD could decline to 0.7100. A sustained drop below this level appears unlikely for now. Resistance is at 07155 followed by 0.7180.”

Next 1-3 weeks: “There is not much to add to our update from last Friday (11 Feb, spot at 0.7150). As highlighted, the recent build-up in momentum has dissipated. The outlook appears to be neutral and AUD could trade within a broad range of 0.7055/0.7240 for now.”