Levels to monitor are 0.6650 and 0.6620 – UOB Group

The Australian Dollar (AUD) is likely to trade in a 0.6660/0.6720 range. In the longer run, rapid increase in momentum is likely to lead to further AUD weakness; the levels to monitor are 0.6650 and 0.6620, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

AUD is likely to trade in a 0.6660/0.6720 range

24-HOUR VIEW: “After AUD dropped sharply in early Asian trade yesterday, we indicated that ‘downward momentum is increasing rapidly, and AUD could continue to decline to 0.6650.’ We added, ‘the major support at 0.6620 is likely of reach today.’ AUD declined less than expected, reaching a low of 0.6859 during NY session. AUD rebounded strongly in early Asian trading today. The rebound in oversold conditions suggest instead of weakening further, AUD is likely to trade in a 0.6660/0.6720 range today.”

1-3 WEEKS VIEW: “Our update from yesterday (16 Oct, spot at 0.6680) still stands. As highlighted, ‘the rapid increase in momentum is likely to lead to further AUD weakness.’ We also highlighted that ‘the levels to monitor are 0.6650 and 0.6620.’ Overall, only a breach of the ‘strong resistance’ at 0.6740 (no change in level from yesterday) would mean that the AUD weakness that started early this month has stabilised.”