The present worth actions are doubtless a part of a 0.6570/0.6615 consolidation part. Within the longer run, short-term momentum has eased barely; AUD should still transfer to 0.6645, however the odds usually are not excessive, UOB Group’s FX analysts Quek Ser Leang and Peter Chia word.
AUD should still transfer to 0.6645
24-HOUR VIEW: “Two days in the past, we anticipated AUD to strengthen. After it rose greater than we anticipated, we identified yesterday that ‘whereas AUD might proceed to rise at present, deeply overbought circumstances counsel any advance might not attain 0.6625.’ Nonetheless, AUD reached a excessive of 0.6525 earlier than easing to shut decrease by 0.19% (0.6591). The present worth actions are doubtless a part of a consolidation part, most likely between 0.6570/0.6615.”
1-3 WEEKS VIEW: “We revised our view to constructive two days in the past (23 Jul, spot at 0.6550), indicating that AUD ‘might edge larger towards 0.6575.’ After AUD soared rapidly above 0.6575, we indicated yesterday (24 Jul, spot at 0.6600) that ‘the speedy improve in momentum is prone to result in additional advance to 0.6625, doubtlessly reaching 0.6645.’ AUD subsequently rose to 0.6625 earlier than retreating. Whereas short-term momentum has eased barely, AUD should still transfer to 0.6645, however the odds usually are not excessive. On the draw back, a break of 0.6545 (‘robust help’ stage was at 0.6530 yesterday) would imply that 0.6645 is out of attain.”
