Australian Dollar (AUD) is under mild downward pressure; it could edge lower to 0.6395. In the longer run, outlook is mixed; AUD is likely to trade in a range between 0.6370 and 0.6480, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
Outlook for the AUD/USD is mixed
24-HOUR VIEW: “We expected AUD to trade in a range between 0.6415 and 0.6465 yesterday. AUD then rose to 0.6459, dropped to 0.6408, and then closed on a soft note at 0.6409 (-0.44%). Given the slight increase in downward momentum, AUD is likely to edge lower to 0.6395. The major support at 0.6370 is unlikely to come under threat. Resistance is at 0.6435; a breach of 0.6450 would indicate that the current mild downward pressure has eased.”
1-3 WEEKS VIEW: “Our most recent narrative was from two days ago (21 May, spot at 0.6425) wherein ‘the recent choppy price action has resulted in a mixed outlook.’ We held the view that AUD ‘is likely to trade in a range between 0.6370 and 0.6480 for the time being.’ There is no change in our view.”