AUD/USD: Current price movements are likely part of a consolidation phase – UOB Group
|Australian Dollar (AUD) is likely to trade in a range between 0.6400 and 0.6480. In the longer run, current price movements are likely part of a consolidation phase, expected to be in a range of 0.6375/0.6500, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.
AUD/USD expected to be in a range of 0.6375/0.6500
24-HOUR VIEW: “Following AUD sharp decline to 0.6373 last Friday, we pointed out yesterday that ‘the sharp drop appears to be excessive.’ However, we were of the view that ‘there is scope for AUD to retest last Friday’s low near 0.6375 before a stabilisation can be expected.’ AUD then dipped to 0.6380 before rebounding strongly to a high of 0.6471. It then eased off to close at 0.6441 (+0.80%). This time around, the sharp rebound appears to be excessive, and AUD is unlikely to rise much further. Today, AUD is more likely to trade in a range, probably between 0.6400 and 0.6480.”
1-3 WEEKS VIEW: “We turned negative in AUD late last week. After AUD plummeted to 0.6373, we indicated yesterday (09 Dec, spot at 0.6400) that “the risk for AUD remains on the downside, likely towards the year-to-date low, near 0.6350.” We did anticipate the sharp bounce that broke above our ‘strong resistance’ level at 0.6450 (high has been 0.6471). In other words, the decline fell short than expected. The current price movements are likely part of a consolidation phase, expected to be in a range of 0.6375/0.6500.”
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.