United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann expect AUD/USD to remain in a consolidation phase after a brief dip to 0.7111 and close around 0.7130. Intraday, the pair is seen holding between 0.7110 and 0.7160, while over the next one to three weeks a slightly wider 0.7080–0.7180 band is expected to contain price action. Longer term, their bias remains lower.

Consolidation holds despite recent pullback

"24-HOUR VIEW: Yesterday, we indicated that AUD “is likely to trade between 0.7130 and 0.7180.” However, AUD dropped to 0.7111 before recovering quickly to close at 0.7129 (-0.45%). The brief decline did not lead to any clear increase in downward momentum, and we continue to expect AUD to trade in a range today, most likely between 0.7110 and 0.7160."

"1-3 WEEKS VIEW: In our most recent narrative from Monday (20 Apr, spot at 0.7130), we highlighted that “the current price movements are likely part of a range-trading phase between 0.7060 and 0.7210.” Since then, AUD traded in a relatively quiet manner. We continue to expect rangetrading, but a narrower range of 0.7080/0.7180 is likely enough to contain the price movements for now."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)