AUD/USD: Expected to trade between 0.6380 and 0.6445 – UOB Group
|Downward momentum has not increased further; Australian Dollar (AUD) is expected to trade between 0.6380 and 0.6445 against US Dollar (USD). In the longer run, a breach of 0.6370 would mean that the current price movements are part of a range trading phase, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Downward momentum has not increased further
24-HOUR VIEW: "The following are the excerpts from our update yesterday: 'After rising to 0.6501, AUD pulled back to 0.6424 before closing on a soft note at 0.6429, a decline of 0.66%. There has been a slight increase in downward momentum, but instead of a sustained decline, AUD is more likely to trade in a lower range of 0.6400/0.6465.' AUD then traded between 0.6391 and 0.6457, closing lower by 0.37% at 0.6405. The price action did not result in further increase in downward momentum. Today, we expect AUD to trade between 0.6380 and 0.6445."
1-3 WEEKS VIEW: "When AUD was at 0.6470 on Wednesday (14 May), we indicated that 'To continue to rise, AUD must break and hold above 0.6515. 'We added, 'The chance of AUD breaking clearly above 0.6515 will increase in the next few days, provided that the ‘strong support’ level, currently at 0.6370, is not breached.' Since then, AUD drifted lower and the chance of it breaking clearly above 0.6515 has diminished. A breach of 0.6370 (no change in ‘strong support’ level) would mean that the current price movements are part of a range trading phase."
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