Further sideways trading seems likely, perhaps within a range of 0.6240/0.6295. In the longer term, the current price action is likely to be the early stages of a recovery phase that could potentially reach 0.6350, noted UOB Group FX analysts Quek Ser Leang and Lee Sue Ann.

"Yesterday, we expected the AUD to ‘trade sideways between 0.6220 and 0.6290.' The AUD subsequently traded within a narrower range of 0.6253/0.6293. The AUD closed largely unchanged at 0.6274 (+0.02%). Further sideways trading seems likely today, perhaps within a range of 0.6240/0.6295."

"We revised our AUD view to positive on Monday (21 Jan, spot at 0.6275), noting that ‘the current price action is likely to be the early stages of a recovery phase that could potentially reach 0.6350.' to make much progress on the upside. However, we will maintain our view as long as 0.6220 (‘strong support' level previously at 0.6190) is not breached."

Source: FXStreet