The continuation of the upside momentum in AUD/USD seems likely in the next few weeks, note UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.
24-hour view: While we expected AUD to edge lower last Friday, we highlighted that “any decline is unlikely to break clearly below 0.6440.” AUD did not quite threaten 0.6440, as it rebounded from a low of 0.6453. The rebound lacks momentum, but AUD could test 0.6540 before levelling off. The major resistance at 0.6585 is highly unlikely to come under threat. The current mild upward pressure is intact as long as AUD stays above 0.6460 (minor support is at 0.6480).
Next 1-3 weeks: We continue to hold the same view as last Thursday (16 Nov, spot at 0.6510). As highlighted, while AUD is likely to advance further, upward momentum is not that strong for now, and the major resistance at 0.6585 might not come into view soon. The upside bias is intact as long as AUD stays above 0.6420 (‘strong support’ level previously at 0.6400).
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.