Set to test the 0.6660 level – UOB Group

The Australian Dollar (AUD) is expected to trade in a range, probably between 0.6580 and 0.6640, or withing a broader range between 0.6545 and 0.6660, UOB Group Quek Ser Leang and Lee Sue Ann note.

Bulls may push towards 0.6660

24-HOUR VIEW: “After AUD pulled back sharply two days ago, we highlighted yesterday that ‘the sharp pullback seems a tad overdone, and AUD is unlikely to weaken much further.’ We expected AUD to ‘trade in a 0.6580/0.6625 range.’ AUD subsequently traded in a wider range of 0.6570/0.6635, closing slightly higher at 0.6610 (+0.20%). The price action did not result in an increase in either downward or upward momentum. Today, we continue to expect AUD to trade in a range, probably between 0.6580 and 0.6640.”

1-3 WEEKS VIEW: “Yesterday (15 Aug, spot at 0.6600), we indicated that ‘if AUD breaks below 0.6580, it would suggest that it is not ready to head higher to 0.6660.’ AUD subsequently dipped to 0.6570 and then rebounded. Momentum indicators are turning neutral, and AUD is likely to trade sideways between 0.6545 and 0.6660 for now.”