Downward pressure appears to have eased; Australian Dollar (AUD) is likely to trade sideways between 0.6460 and 0.6520. In the longer run, AUD appears to have moved into a range-trading phase between 0.6430 and 0.6550, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
AUD appears to have moved into a range-trading phase
24-HOUR VIEW: “After AUD fell sharply in the early Asian session last Friday, we indicated that ‘the decline has scope to extend to 0.6460.’ However, we pointed out that ‘the major support at 0.6430 is unlikely to come under threat.’ While our assessments were not wrong, as AUD dropped to a low of 0.6457, it rebounded quickly from the low. Downward pressure appears to have eased with the rebound, and today, AUD is likely to trade in a range, probably between 0.6460 and 0.6520.”
1-3 WEEKS VIEW: “Our update from last Friday (13 Jun, spot at 0.6495) is still valid. As highlighted, ‘the current price movements are likely the early stages of a range-trading phase, and we expect AUD to trade between 0.6430 and 0.6550 for the time being.’