Next level to watch is 0.6440 – UOB Group

Further declines in AUD still appear likely; the next level to watch is 0.6440, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

Further declines in AUD still appear likely

24-HOUR VIEW: “When AUD was at 0.6500 in the early Asian session yesterday, we were of the view that it ‘is likely to consolidate in a range of 0.6465/0.6530.’ Our view of consolidation was not wrong, even though AUD traded within a narrower range than expected (0.6493/0.6533). The price movements still appear to be part of a consolidation. Today, we expect AUD to trade between 0.6495 and 0.6535.”

1-3 WEEKS VIEW: “We stated yesterday (13 Oct, spot at 0.6500) that ‘further declines in AUD still appear likely, and the next level to watch is 0.6440.’ We will maintain the same view as long as AUD holds below 0.6575 (no change ‘strong resistance’ level from yesterday). A breach of the ‘strong resistance’ level would indicate that the decline from the middle of last week has ended.”