AUD/USD clings to the range bound theme – UOB
|In the view of UOB Group’s Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia, AUD/USD should maintain its current consolidative mood for the time being.
Key Quotes
24-hour view: Two days ago, AUD broke below a strong support at 0.6355 and dropped sharply to 0.6332. Yesterday, we indicated that “the sharp drop appears to be overdone, and AUD is unlikely to weaken much further.” We expected AUD to trade in a range between 0.6330 and 0.6390. Instead of trading in a range, AUD rebounded robustly to a high of 0.6432. The strong rebound could test 0.6455 before easing. The major resistance at 0.6480 is unlikely to come into view. Support is at 0.6405, followed by 0.6380.
Next 1-3 weeks: After AUD broke below the strong support level of 0.6355 and reached a low of 0.6332, we highlighted yesterday (28 Sep, spot at 0.6355) that “while the price action suggests AUD is likely to weaken further, downward momentum is not that strong, and the support at 0.6280 is unlikely to be reached anytime soon.” We also highlighted that “AUD is likely to remain under pressure unless it breaks above the ‘strong resistance’ level, currently at 0.6430.” In NY trade, AUD rose to a high of 0.6432. The breach of the ‘strong resistance’ level has invalidated our view. Overall, AUD is still likely trading in a range, probably between 0.6360 and 0.6480.
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.