AUD/USD: Signs of building downward momentum – UOB Group
|Australian Dollar (AUD) is likely to trade in a range between 0.6500 and 0.6540 against US Dollar (USD). In the longer run, upward momentum has dissipated, signs of building downward momentum; AUD is likely to edge lower, potentially reaching 0.6480, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
AUD is likely to edge lower towards 0.6480
24-HOUR VIEW: "While we indicated yesterday that 'there is room for AUD to test 0.6500,' we were of the view that 'a sustained decline below this level is unlikely.' We were not wrong, as AUD dipped to a low of 0.6496 and then closed at 0.6511 (-0.15%). There has been no increase in downward momentum and today, AUD is likely to trade in a range, probably between 0.6500 and 0.6540."
1-3 WEEKS VIEW: "We continue to hold the same view as yesterday (29 Jul, spot at 0.6525). As highlighted, the recent buildup in upward momentum had dissipated, and 'there are early signs of building downward momentum.' AUD 'is likely to edge lower, potentially reaching 0.6480.' To maintain the build-up in momentum, AUD must hold below 0.6570 (‘strong resistance’ level was at 0.6585 yesterday)."
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