Delicate upward strain suggests AUD might edge increased, however it’s unlikely to succeed in 0.6575. Within the longer run, there was a lightweight improve in upward momentum; AUD might edge increased towards 0.6575, UOB Group’s FX analysts Quek Ser Leang and Peter Chia word.
To take care of the momentum, AUD should maintain above 0.6505
24-HOUR VIEW: “Whereas we acknowledged yesterday that ‘the underlying tone in AUD has firmed,’ we highlighted that ‘that is more likely to result in the next vary of 0.6505/0.6545 as a substitute of a sustained rise.’ We didn’t count on AUD to rise to a excessive of 0.6558. Momentum is rising, albeit not by a lot. As we speak, we count on AUD to edge increased. On condition that momentum is delicate for now, any advance is unlikely to succeed in 0.6575. Help is at 0.6535; a breach of 0.6520 would point out that the present delicate upward strain has eased.”
1-3 WEEKS VIEW: “After holding a unfavorable AUD view for the reason that center of final week (see annotations within the chart under), we identified yesterday (22 Jul, spot at 0.6525) that ‘downward momentum is starting to sluggish, and the probability of AUD dropping to 0.6455 is diminishing.’ We added, ‘until AUD breaks and holds under 0.6490 within the subsequent couple of days, a breach of the ‘robust resistance’ at 0.6560 is not going to be shocking.’ AUD subsequently rose to a excessive of 0.6558. Though our ‘robust resistance’ stage at 0.6560 has not been breached but, downward momentum has light. There was a slight improve in upward momentum, suggesting AUD might edge increased towards 0.6575. To take care of the momentum, AUD should maintain above 0.6505.”
