Australian Greenback (AUD) doesn’t seem to have sufficient momentum to proceed to say no vs US Greenback (USD); it’s extra more likely to commerce in a spread of 0.6430/0.6485. Within the longer run, the loss in upward momentum signifies the probability of AUD reaching 0.6550 is low, UOB Group’s FX analysts Quek Ser Leang and Peter Chia word.
Probability of AUD reaching 0.6550 is low
24-HOUR VIEW: “Within the early Asian session yesterday, when AUD was at 0.6480, we anticipated it to ‘consolidate in a spread between 0.6455 and 0.6510.’ Nonetheless, AUD edged to a low of 0.6435. Whereas the weak spot has not fairly stabilised, AUD doesn’t seem to have sufficient momentum to proceed to say no. Immediately, AUD is extra more likely to commerce in a spread of 0.6430/0.6485.”
1-3 WEEKS VIEW: “On Monday (26 Might, spot at 0.6495), we indicated that ‘there was a fast buildup in momentum.’ We count on AUD to ‘commerce with an upward bias towards 0.6550.’ AUD then rose to 0.6537 and pulled again. Yesterday, AUD pulled again additional to 0.6435. The loss in momentum signifies the probability of AUD reaching 0.6550 is low. From right here, if AUD have been to interrupt clearly under 0.6430 (no change in ‘sturdy help’ stage), it could imply that it may vary commerce for a interval.”
