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UOB analysts Quek Ser Leang and Lee Sue Ann note that the AUD/USD pair has been trading in a narrow range, currently oscillating between 0.6920 and 0.6960. Earlier upward momentum has weakened, and the pair is projected to consolidate within 0.6890 to 0.6975 over the next 1–3 weeks. This sideways movement suggests a lack of clear directional bias, with traders likely to focus on key support/resistance levels for potential breakouts.
For forex traders, this range-bound behavior reduces volatility, making breakout strategies or short-term directional bets less effective. The absence of strong momentum could lead to increased consolidation, requiring traders to monitor volume and broader macroeconomic factors like RBA policy or commodity prices. A sustained move beyond the projected range would signal renewed interest in the pair.
Investors in the Gulf and MENA region should watch for any shifts in AUD/USD dynamics, particularly if commodity-linked currencies gain traction. Key events to track include RBA rate decisions, global risk appetite, and AUD/USD liquidity conditions. Traders may also consider hedging strategies if the pair remains range-bound for extended periods.
