AUD/USD is still seen within a consolidative range – UOB
|In the view of Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group, AUD/USD is now likely to trade between 0.6365 and 0.6500 in the next few weeks.
Key Quotes
24-hour view: After AUD dropped sharply to a low of 0.6413 last Thursday, we highlighted on Friday that “the sharp drop has room to extend, but it is unlikely to challenge the major support at 0.6365.” We indicated that “there is another support at 0.6390.” While our view was not wrong as AUD dropped to a low of 0.6380, the decline was brief as it rebounded quickly from the low. Downward momentum has waned somewhat, and the outlook for AUD today appears to be neutral. In other words, it is likely to trade sideways, probably between 0.6385 and 0.6445.
Next 1-3 weeks: Last Friday (25 Aug, spot at 0.6420), we highlighted that “instead of rebounding further, AUD is more likely to trade in a range of 0.6365/0.6500 for the time being.” We continue to hold the same view. Looking ahead, if AUD breaks clearly below 0.6365, it could trigger a decline to 0.6300.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.