AUD/USD: Expected to trade in a narrower range of 0.6555/0.6640 – UOB Group

The underlying tone appears to have firmed somewhat; Australian Dollar (AUD) may edge higher, but any advance is likely part of a higher range of 0.6595/0.6630. In the longer run, AUD remains neutral but is now expected to trade in a narrower range of 0.6555/0.6640, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

AUD/USD remains neutral

24-HOUR VIEW: "The following are excerpts from our update yesterday: 'The undertone still appears to be soft, but while AUD may edge lower today, any decline is likely part of a lower range of 0.6580/0.6620.' AUD traded between 0.6582 and 0.6621, closing at 0.6618 (+0.27%). This time around, the underlying tone appears to have firmed somewhat, but while AUD may edge higher, any advance is likely part of a higher range of 0.6595/0.6630."

1-3 WEEKS VIEW: "We have held a neutral AUD view since the start of this month. Yesterday (06 Oct, spot at 0.6595), we stated that 'we continue to hold a neutral stance on AUD, but now expect it to trade in a narrower range of 0.6555/0.6640.' There is no change in our view."