In view of FX Strategists at UOB Group, extra weakness in the Aussie Dollar seems to have lost momentum, although a test of 0.6765 still remains on the table.
24-hour view: “AUD traded between 0.6783 and 0.6814, relatively close to our expected sideway-trading range of 0.6785/0.6820. The soft closing in NY (0.6787) suggests the immediate risk is on the downside. That said, in view of lackluster momentum, any weakness is unlikely to threaten the solid support at 0.6765. Resistance is at 0.6805 followed by 0.6820”.
Next 1-3 weeks: “AUD surrendered most of the gains from Tuesday (19 Nov) as it declined by -0.40% and closed at 0.6802 in NY. Despite the relatively soft price action, we continue to hold the view from yesterday (20 Nov, spot at 0.6820) wherein the “odds for further AUD weakness have diminished”. However, as highlighted, only a break of 0.6845 (no change in ‘strong resistance’ level) would indicate the current weakness has stabilized. Until then, another ‘down-leg’ to 0.6765 is not ruled out just yet”.
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