AUD/USD seen sidelined between 0.7830 and 0.7980 – UOB

According to FX Strategists at UOB Group, AUD/USD is expected to keep the rangebound theme within the 0.7830/0.7980 range in the near term.

Key Quotes

24-hour view: “The strong support highlighted at 0.7830 held as AUD rebounded after touching a low of 0.7839 last Friday. While the recovery appears to be running ahead of itself, there is room for a test of 0.7920. From here, a move above this level is not ruled out but the next major resistance at 0.7945 is unlikely to come under serious threat. Support is at 0.7870 followed by the 0.7839 low”.

“The robust recovery ahead of the strong 0.7830 support was not unexpected (low of 0.7839 last Friday). We have highlighted the ‘lackluster momentum’ late last week and the strong rebound indicates that the recent downward pressure has eased. From here, the outlook for AUD is still deemed as neutral and this pair is expected to trade sideways between 0.7830 and 0.7980”.