AUD/USD: Expected to trade in a 0.6325/0.6365 range – UOB Group

Australian Dollar (AUD) is expected to trade in a 0.6325/0.6365 range vs US Dollar (USD). In the longer run, upward momentum has largely faded; AUD is likely to consolidate between 0.6280 and 0.6410 for now, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Upward momentum has largely faded

24-HOUR VIEW: "Yesterday, we detected 'a slight increase in downward momentum.' We expected AUD to 'edge lower,' but we indicated that 'any decline is unlikely to reach 0.6315.' Our view was correct, as AUD dipped to 0.6323, recovering to close largely unchanged at 0.6344 (-0.09%). The mild downward pressure has eased. Today, we expect AUD to trade in a 0.6325/0.6365 range."

1-3 WEEKS VIEW: "After holding a positive AUD view since early this month, we revised our view to neutral yesterday (25 Feb, spot at 0.6345). We pointed out that 'upward momentum has largely faded,' and we were of the view that AUD 'is likely to consolidate to between 0.6280 and 0.6410.' Our view remains unchanged."