Forex
AUD/USD Capped in Narrow Range as Analysts Predict Gradual Upside
Quek Ser Leang and Lee Sue Ann from UOB expect the Australian Dollar (AUD) to trade within a narrow range against the US Dollar (USD). They predict that AUD/USD could edge higher, but gains are likely to stay within the 0.7160-0.7240 range over the next 1-3 weeks.
The analysts note that the AUD has been trading in a quiet manner between 0.7205 and 0.7238, with momentum indicators mostly flat. They expect the currency pair to trade within a range of 0.7200-0.7235 over the next 24 hours.
On a multi-week view, UOB's analysts believe that AUD/USD could continue rising, but a retest of the year-to-date high at 0.7277 is uncertain. They maintain their current view, which has been in place since last Friday (04 Sep) when spot prices were at 0.7205.