Outlook for AUD/USD remains mixed – UOB

AUD/USD could now navigate within the 0.7690 and 0.7815 range in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our expectation for AUD to ‘strengthen further’ was incorrect as it dropped to 0.7762 before falling further during Asian hours. Further weakness is not ruled out but the major support at 0.7690 is unlikely to come under threat (0.7720 is already quite a strong level). On the upside, resistance is at 0.7770 followed by 0.7790.”

Next 1-3 weeks: “We noted yesterday (27 Apr, spot at 0.7795) that ‘rapid improvement in momentum suggests AUD could advance further’. Our view was proven wrong quickly as AUD dropped below our ‘strong support’ level of 0.7735 during Asian hours. The sharp but short-lived swings have resulted in a mixed outlook. AUD could trade between 0.7690 and 0.7815 for now.”