AUD/USD: Set to test 0.6500 near term – UOB Group
|The Australian Dollar (AUD) is under mild downward pressure; it could drift lower, but a sustained break below 0.6500 appears unlikely. In the longer run, there has been a tentative buildup in momentum; to decline in a sustained manner, AUD must break and remain below 0.6500, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.
To decline further, AUD must break and remain below 0.6500
24-HOUR VIEW: “We expected AUD to trade in a 0.6555/0.6595 range yesterday. Our view was incorrect, as instead of trading in a range, AUD dropped to 0.6515, closing on a soft note at 0.6532 (-0.64%). Despite the decline, downward momentum has not increased much. However, provided that 0.6560 (minor resistance is at 0.6545) is not breached, AUD could drift lower to 0.6500. Due to the mild momentum, a sustained break below 0.6500 appears unlikely.”
1-3 WEEKS VIEW: “Our most recent narrative was from Monday (11 Nov, spot at 0.6585), wherein the recent pronounced but short-lived price movements have resulted in a mixed outlook. We indicated that AUD ‘could continue to trade in a choppy manner, likely between 0.6515 and 0.6690.’ Yesterday, AUD tested the lower end of our expected range, touching a low of 0.6515. There has been a tentative buildup in momentum, but it is too early to determine whether it is sufficient for a sustained decline. To decline in a decisive manner, AUD must break and remain below 0.6500. The likelihood of AUD breaking clearly below 0.6500 will increase in the coming few days, provided that 0.6600 is not breached. Looking ahead, the next support below 0.6500 is at 0.6460.”
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.