In view of FX Strategists at UOB Group, the Aussie Dollar remains neutral in the short-term horizon and it is seen within a consolidative theme so far.
Key Quotes
24-hour view: “We highlighted last Friday that the rapid pull-back in AUD “appears incomplete but a sustained move below 0.7672 seems unlikely”. AUD dipped to a low of 0.7686 before staging a mild recovery. The price action is deemed as part of a consolidation phase and range trading is expected for today, likely within a 0.7685/0.7745 range”.
Next 1-3 weeks: “We just shifted from a bearish to neutral stance yesterday and there is no change to the view. Despite the rapid pullback from a high of 0.7793, we do not think AUD is ready to re-enter a bearish phase. That said, the immediate bias is tilted to the downside and we are lowering the expected consolidation range to 0.7650/0.7820 (from 0.7680/0.7860 previously)”.
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