Australian Greenback (AUD) might retest the 0.6550 degree in opposition to US Greenback (USD) earlier than a extra sustained and deeper pullback is probably going. Within the longer run, AUD seems to have moved right into a range-trading section between 0.6430 and 0.6550, UOB Group’s FX analysts Quek Ser Leang and Peter Chia be aware.
AUD seems to have moved right into a range-trading section
24-HOUR VIEW: “Final Friday, AUD dropped sharply to 0.6457 earlier than rebounding rapidly. Yesterday, we indicated that ‘downward strain seems to have eased with the rebound.’ We have been of the view that AUD ‘is more likely to commerce in a spread between 0.6460 and 0.6520.’ Our view of rangetrading was incorrect, as AUD rose to 0.6552 after which pulled again to shut up by 0.55% at 0.6524. Regardless of the pullback, the underlying tone stays agency, and AUD might retest the 0.6550 degree earlier than a extra sustained and deeper pullback is probably going. The most important resistance at 0.6580 is unlikely to become visible. Assist is at 0.6500; a breach of 0.6480 would point out that AUD is more likely to commerce in a spread as an alternative of retesting 0.6550.”
1-3 WEEKS VIEW: “Final Friday (13 Jun, spot at 0.6495), we highlighted that ‘the present value actions are possible the early phases of a range-trading section, and we count on AUD to commerce between 0.6430 and 0.6550 in the meanwhile.’ Yesterday (Monday), AUD examined the 0.6550 degree, retreating from a excessive of 0.6552. The worth motion didn’t lead to a rise in upward momentum, and we proceed to carry the identical view for now.”
