AUD/USD: Is set to test support at 0.6710 – UOB Group

FXStreet Insights Team FXStreet

The Australian Dollar (AUD) is likely to trade in a sideways range of 0.6710/0.6750. Upward momentum has faded; downward momentum has increased slightly, but AUD is unlikely to break 0.6680, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann note.

Rangebound within 0.6710/0.6750 for now

24-HOUR VIEW: “Yesterday, we expected AUD to drop further to 0.6705. Our expectation did not materialise, as it dropped to 0.6722, closing at 0.6729 (- 0.07%). In Asian trade today, AUD dropped briefly to 0.6715 before rebounding. The price movements did not result in any increase in momentum, and AUD is unlikely to weaken much further. Today, we expect it to trade sideways between 0.6710 and 0.6750.”

1-3 WEEKS VIEW: “Our update from yesterday (17 Jul, spot at 0.6730) is still valid. As highlighted, not only has the recent upward momentum faded, but downward momentum has also increased slightly. AUD is likely to trade with a downward bias, but at this time, it does not appear to have enough momentum to break the major support at 0.6680. On the upside, a breach of 0.6775 (no change in ‘strong resistance’ level from yesterday) would indicate that the current modest downward momentum has eased.”

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

AUD/USD hits nine-week lows below 0.7000 on RBA Bullock's remarks

AUD/USD reverses a brief uptick and turns lower to hit nine-week lows below 0.7000 in the European morning on Tuesday, as traders digest cautious remarks from Reserve Bank of Australia (RBA) Governor Michele Bullock during the press conference. Earlier on, the RBA raised the cash rate to 4.60%, as widely expected, leaving the door open to further rate hikes if needed.

USD/JPY consolidates near 157.50 as a bullish USD counters intervention risks

USD/JPY struggles to capitalize on the overnight bounce from a one-week low, consolidating around 157.50 in the Asian session on Tuesday. Trump's concerns about the Japanese Yen's weakness fueled speculation about another US-Japan joint intervention. This, along with the hawkish BoJ, underpins the JPY and caps the currency pair. Meanwhile, rising Fed rate-hike bets and oil-driven inflation fears continue to push US bond yields to multi-year highs, keeping the US Dollar pinned near a two-month high and supporting the pair.