Expected to trade in a sideways range of 0.6660/0.6695 – UOB Group

The Australian Dollar (AUD) is expected to trade in a sideways range of 0.6660/0.6695. In the long run, rejuvenated momentum suggests AUD weakness remains intact; the level to monitor is 0.6620, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

The level to monitor is 0.6620

24-HOUR VIEW: “After AUD dropped sharply two days ago, we expected it to ‘decline further’ yesterday. However, AUD rebounded, closing at 0.6683 (+0.36%). AUD appears to have entered a sideways trading phase. Today, we expect it to trade between 0.6660/0.6695.”

1-3 WEEKS VIEW: “AUD fell sharply two days ago. Yesterday (22 Oct, spot at 0.6715), we highlighted that ‘the rejuvenated momentum suggests that the AUD weakness from early this month remains intact.’ We added, ‘the level to monitor is 0.6620.’ We did not expect the subsequent rebound that reached a high of 0.6695. From here, if AUD were to break above 0.6705 (no change in ‘strong resistance’ level), it would mean that the weakness in AUD has stabilised.”