AUD/USD: Set to continue trading in a choppy manner – UOB Group

AUD could continue to trade in a choppy manner, likely between 0.6220 and 0.6320. In the longer run, sharp but short-lived swings have resulted in a mixed outlook; AUD could trade in a 0.6185/0.6340 range for now, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Sharp but short-lived swings have resulted in a mixed outlook

24-HOUR VIEW: "Yesterday, we expected AUD to 'trade in a 0.6250/0.6300' range. However, AUD swung sharply in a wide 0.6257/0.6341 range. The price action has resulted in a mixed outlook. Today, AUD could continue to trade in a choppy manner, likely between 0.6220 and 0.6320."

1-3 WEEKS VIEW: "In our latest narrative from Tuesday (01 Apr, spot at 0.6245), we highlighted that after the sharp drop on Monday, the increase in momentum indicates that AUD 'could continue to decline.' However, we pointed out, 'it is too early to determine if it can reach 0.6185.' During the late NY session, AUD rose above our ‘strong resistance’ level at 0.6300 (high of 0.6341) before dropping sharply. The outlook for AUD after the recent sharp but short-lived swings has resulted in a mixed outlook. For the time being, AUD could trade in a 0.6185/0.6340 range."