Chance for AUD to test 0.6440 – UOB Group

Australian Dollar (AUD) is likely to range-trade between 0.6460 and 0.6520. In the longer run, 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.

Likely to range-trade between 0.6460 and 0.6520

24-HOUR VIEW: “Yesterday, we expected AUD to ‘consolidate between 0.6495 and 0.6535.’ Our view was incorrect, as AUD plummeted to a low of 0.6443 before rebounding strongly to close at 0.6485 (-0.48%). The immediate downward pressure has eased with the rebound. Today, we expect AUD to range-trade, most likely between 0.6460 and 0.6520.”

1-3 WEEKS VIEW: “Following the sharp drop in AUD last Friday, we indicated on Monday (13 Oct, spot at 0.6500) that ‘further declines in AUD still appear likely, and the next level to watch is 0.6440.’ Yesterday, AUD fell to a low of 0.6443 before rebounding strongly. Despite the relatively sharp decline, there has been no clear increase in downward momentum. That said, as long as 0.6545 (‘strong resistance’ level previously at 0.6575) holds, there is still a chance for AUD to test 0.6440.”