Australian Dollar: Neutral outlook inside tight range against US Dollar – UOB
United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann note that AUD/USD extended its recent gains on Tuesday, helped by improved risk appetite, but they still characterise the near-term move as only a tentative recovery.
UOB strategists, Quek Ser Leang and Lee Sue Ann, maintain a neutral outlook for the Australian Dollar against the US Dollar, with the currency trading within a narrow range. Intraday, they anticipate the AUD to modestly rise, while over the next 1-3 weeks, they predict a sideways trade between support and resistance levels. After closing at 0.6972 the previous day, the AUD has edged up to 0.6984, still within the 0.6945/0.6985 range.
Despite the tentative increase in momentum, UOB remains cautious, advising that the AUD is unlikely to break above 0.6985. In the following weeks, the analysts project the AUD to trade between 0.6935 and 0.7020, holding a neutral stance. The recent recovery is not seen as sustained, and geopolitical uncertainty continues to impact the market, prompting traders to watch the FOMC Minutes for further clues.
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