AUD/USD keeps the 0.7540/0.7705 range – UOB

FX Strategists at UOB Group has suggested AUD/USD points to further consolidation between 0.7540 and 0.7705.

Key Quotes

“While the pull-back in AUD touched 0.7620/25 as expected (low of 0.7613), the subsequent rapid rebound from the low was unexpected. From here, the undertone is tilted to the downside as long as 0.7690/95 is intact but at this stage, any down-move is expected to struggle to move below the now rather strong support of 0.7615/20”.

“AUD registered and ‘inside day’ yesterday and there is no change to the current neutral outlook. Indicators are showing mixed signals and it does not appear that this pair is about to embark on af sustained directional move. In other words, we continue to expect a 0.7540/0.7705 consolidation range for now.