Bias for AUD remains on the downside – UOB Group

The Australian Dollar (AUD) is likely to trade in a sideways range of 0.6710/0.6760. In the longer run, bias for AUD remains on the downside; a clear break below 0.6700 would suggest further decline, potentially to 0.6670, UOB Group’s FC analysts Quek Ser Leang and Lee Sue Ann note.

Clear break below 0.6700 to suggest further decline

24-HOUR VIEW: “We indicated last Friday that ‘the price action is likely part of a sideways trading phase, probably in a range of 0.6715/0.6770.’ AUD subsequently traded sideways, albeit in a narrower range of 0.6726/0.6759. The price movements provide no fresh clues, and further sideways trading appears likely. Expected range for today: 0.6710/0.6760.”

1-3 WEEKS VIEW: “Our most recent narrative was from last Thursday (10 Oct, spot at 0.6720), wherein ‘while there has been no significant increase in momentum, the bias for AUD remains on the downside.’ We added, ‘a clear break below 0.6700 would suggest AUD could decline further, potentially to 0.6670.’ AUD subsequently traded in a quiet manner, and we will continue to hold the same view provided that 0.6785 (no change in ‘strong resistance’ level) is not breached.”