In the opinion of UOB Group’s Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia, AUD/USD is likely to extend the range bound theme for the time being.
24-hour view: “AUD traded sideways between 0.6612 and 0.6669 yesterday, narrower than our expected range of 0.6585/0.6680. Further sideways trading appears likely, expected to be in a range of 0.6630/0.6690.”
Next 1-3 weeks: “Three days ago (14 Mar, spot at 0.6665), we highlighted that AUD appears to have moved into a consolidation phase and that it is likely to trade in a range between 0.6570 and 0.6770. While we continue to expect AUD to trade within its consolidation range, in view of the decreased volatility, we have narrowed the expected range to 0.6570/0.6735.”