The Australian Dollar (AUD) could continue to weaken; it is unclear if it has enough momentum to break the significant support at 0.6425, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann note.
AUD is set to test the 0.6425 support
24-HOUR VIEW: “The significant support at 0.6425 is highly unlikely to come under threat. Our expectation for AUD to weaken further last Friday was incorrect, as it rebounded to a high of 0.6547. AUD then pulled back and closed modestly higher at 0.6515 (+0.15%). The underlying tone still seems a tad soft. Today, we expect AUD to edge lower, possibly dropping below last week’s low of 0.6480. The significant support at 0.6425 is highly unlikely to come under threat. Resistance is at 0.6515, followed by 0.6535.”
1-3 WEEKS VIEW: “Our update from last Friday (02 Aug, spot at 0.6490) still stands. As highlighted, while AUD could continue to weaken, it is unclear if it has enough momentum to break the significant support at 0.6425. Overall, only a breach of 0.6550 (no change in ‘strong resistance’ level from last Friday) would mean that the weakness in AUD that started in mid-July has come to an end.”
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