Set to trade between 0.6280 and 0.6330 – UOB Group

Current price movements appear to be part of a range trading phase between 0.6280 and 0.6330. In the longer run, buildup in upward momentum is slowing; a breach of 0.6265 would suggest AUD is likely to trade in a range vs US Dollar (USD) instead of recovering, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note. 

AUD is likely to trade in a range

24-HOUR VIEW: “Last Friday, we expected AUD to ‘trade in a range between 0.6300 and 0.6350.’ Instead of trading in a range, AUD fell to a low of 0.6283, rebounding to close lower by 0.41% at 0.6306. The decline lacks momentum, and the current price movements appear to be part of a range trading phase, most likely between 0.6280 and 0.6330.” 

1-3 WEEKS VIEW: “Our most recent narrative was from last Thursday (06 Mar, spot at 0.6330), wherein AUD ‘could recover, potentially reaching 0.6410.’ Since then, AUD has not been able to make much headway on the upside. The buildup in momentum is slowing, and a breach of 0.6265 (no change in ‘strong support’ level) would suggest AUD is likely to trade in a range instead of recovering.”