There’s room for Australian Greenback (AUD) to check 0.6500 in opposition to US Greenback (USD); a sustained decline under this degree is unlikely. Within the longer run, upward momentum has dissipated, indicators of constructing downward momentum; AUD is more likely to edge decrease, probably reaching 0.6480, UOB Group’s FX analysts Quek Ser Leang and Peter Chia word.
Upward momentum has dissipated
24-HOUR VIEW: “We anticipated AUD to ‘consolidate in a spread of 0.6555/0.6595’ yesterday. Our view of consolidation was incorrect, as AUD plummeted to a low of 0.6513. Regardless of the decline, AUD has not gained a lot momentum. Nonetheless, there may be room for AUD to check 0.6500. Primarily based on the present momentum, a sustained decline under this degree is unlikely. The following assist at 0.6480 can also be unlikely to come back underneath menace. Resistance is at 0.6545; a break again above 0.6560 would point out that the decline in AUD is beginning to stabilise.”
1-3 WEEKS VIEW: “We’ve held a constructive AUD view for the reason that center of final week. After AUD reached our prior technical goal at 0.6625 and pulled again, we highlighted final Friday (25 Jul, spot at 0.6590) that ‘whereas short-term momentum has eased barely, AUD should transfer to 0.6645, however the odds are usually not excessive.’ We additionally indicated that ‘a break of 0.6545 (‘sturdy assist’ degree) would imply that 0.6645 is out of attain.’ AUD then fell sharply to a low of 0.6513, closing at 0.6521, down by 0.67%. Not solely has upward momentum dissipated, however there are additionally early indicators of constructing downward momentum. From right here, AUD is more likely to edge decrease, probably reaching 0.6480. To take care of the build-up in momentum, AUD should maintain under 0.6585.”
