AUD/USD: Downward momentum is likely to result in a lower trading range – UOB Group
|Slight increase in downward momentum is likely to result in a lower trading range of 0.6215/0.6265. In the longer run, for the time being, AUD is expected to trade between 0.6180 and 0.6310, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.
AUD is likely to trade in a range for the time being
24-HOUR VIEW: “After the choppy trading in AUD on Monday, we indicated yesterday (when AUD was trading at 0.6240) that ‘the sharp but brief swings have resulted in a mixed outlook.’ We held the view that AUD ‘could trade sideways, probably between 0.6210 and 0.6280.’ AUD then traded in a 0.6228/0.6288 range, closing lower by 0.25% at 0.6231. Although the price action has led to a slight increase in downward momentum, this is likely to result in a lower trading range of 0.6215/0.6265 instead of a sustained decline.”
1-3 WEEKS VIEW: “We pointed out yesterday (07 Jan, spot at 0.6240) that AUD ‘may have found an interim bottom at 0.6179 last week.’ However, we noted that ‘as there has been no significant increase in upward momentum, AUD is likely to trade in a range for the time being, expected to be between 0.6180 and 0.6310.’ There is no change in our view.”
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.