Australian Greenback (AUD) is predicted to consolidate in a variety of 0.6495/0.6555 towards US Greenback (USD). Within the longer run, downward momentum is beginning to construct; AUD is more likely to edge decrease towards 0.6460, UOB Group’s FX analysts Quek Ser Leang and Peter Chia notice.
Downward momentum is beginning to construct
24-HOUR VIEW: “AUD dropped sharply to a low of 0.6485 on Monday. Yesterday (Tuesday), we identified that ‘the sharp drop seems extreme, and AUD is unlikely to weaken a lot additional.’ We anticipated AUD ‘to consolidate between0.6485 and 0.6535.’ Whereas AUD didn’t weaken additional (low of 0.6491), it spiked briefly to a excessive of 0.6559 earlier than retreating to shut at 0.6531 (+0.59%). The value actions nonetheless seem like a part of a consolidation section. At this time, we anticipate AUD to commerce in a variety of 0.6495/0.6555.”
1-3 WEEKS VIEW: “We turned impartial on AUD two days in the past (07 Jul, spot at 0.6555), indicating that ‘upward momentum has largely eased, and AUD is more likely to commerce in a variety between 0.6490 and 0.6590 in the intervening time.’ After AUD dropped to a low of 0.6390, we revised our view to unfavorable yesterday (08 Jul, spot at 0.6515). We said that ‘downward momentum is beginning to construct, and we anticipate AUD to edge decrease towards 0.6460.’ Our view stays unchanged so long as 0.6585 (‘robust resistance’ degree was at 0.6600 yesterday) will not be breached.”
