AUD/USD: Set to test 0.6500 near term – UOB Group
The Australian Dollar (AUD) is under mild downward pressure; it could drift lower, but a sustained break below 0.6500 appears unlikely. In the longer run, there has been a tentative buildup in momentum; to decline in a sustained manner, AUD must break and remain below 0.6500, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.
To decline further, AUD must break and remain below 0.6500
24-HOUR VIEW: “We expected AUD to trade in a 0.6555/0.6595 range yesterday. Our view was incorrect, as instead of trading in a range, AUD dropped to 0.6515, closing on a soft note at 0.6532 (-0.64%). Despite the decline, downward momentum has not increased much. However, provided that 0.6560 (minor resistance is at 0.6545) is not breached, AUD could drift lower to 0.6500. Due to the mild momentum, a sustained break below 0.6500 appears unlikely.”
1-3 WEEKS VIEW: “Our most recent narrative was from Monday (11 Nov, spot at 0.6585), wherein the recent pronounced but short-lived price movements have resulted in a mixed outlook. We indicated that AUD ‘could continue to trade in a choppy manner, likely between 0.6515 and 0.6690.’ Yesterday, AUD tested the lower end of our expected range, touching a low of 0.6515. There has been a tentative buildup in momentum, but it is too early to determine whether it is sufficient for a sustained decline. To decline in a decisive manner, AUD must break and remain below 0.6500. The likelihood of AUD breaking clearly below 0.6500 will increase in the coming few days, provided that 0.6600 is not breached. Looking ahead, the next support below 0.6500 is at 0.6460.”
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FXStreet Insights Team
FXStreet
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