UOB’s Quek Ser Leang notes that AUD/USD’s abrupt jump to 0.6943 was not sustained, leaving the pair likely to consolidate between 0.6895 and 0.6945 in the near term. For the next one to three weeks, the bank maintains a neutral stance, expecting the Australian Dollar to trade between 0.6870 and 0.6980 despite a still-negative longer-term bias.

Short term range, medium term neutral

“24-HOUR VIEW: We expected AUD to “trade in a range between 0.6880 and 0.6915.” During the NY session, AUD dipped to 0.6885, and then in an abrupt move, jumped to a high of 0.6943. However, the advance was not sustained, as AUD pulled back to close at 0.6923 (+0.42%). The sharp rise appears to be overdone, and AUD is unlikely to rise much further. Today, AUD is more likely to consolidate between 0.6895 and 0.6945.”

“1-3 WEEKS VIEW: We revised our AUD view from negative to neutral two days ago (01 Jul, spot at 0.6915). We noted that “downward momentum has faded,” and we indicated that AUD “is likely to trade between 0.6870 and 0.6980 for the time being.” We continue to hold the same view for now.”

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