UOB Research discusses AUD/USD technical outlook and maintains a tactical neutral bias.
"AUD is expected to trade sideways. AUD spent another day ‘going nowhere’ as it traded in a tight range before closing marginally higher at 0.6781 (+0.04%).
The protracted consolidation phase (AUD has traded sideways within a 100 pips range for more than 2 weeks now) has resulted in ‘neutral’ momentum indicators and the prospect for a sustained recovery is not high," UOB notes.
"In other words, unless AUD register a daily closing out of the expected 0.6730/0.6845 range, it could continue to trade sideways for a while more," UOB adds.