Australian Greenback (AUD) is prone to commerce in a sideways vary between 0.6455 and 0.6495. Within the longer run, downward momentum is slowing; a breach of 0.6520 would point out that AUD will not be breaking under 0.6405, UOB Group’s FX analysts Quek Ser Leang and Peter Chia notice.
Downward momentum is slowing
24-HOUR VIEW: “We indicated the next after final Friday’s value actions: ‘The value actions didn’t end in any important improve in upward momentum. Quite than persevering with to rise, AUD is extra prone to commerce sideways at the moment, most likely between 0.6430 and 0.6495.’ Our view of sideways buying and selling was not flawed, though AUD traded inside a a lot narrower vary than anticipated (0.6460/0.6489). The value motion nonetheless seems to be a part of a sideways buying and selling section. As we speak, we count on AUD to commerce between 0.6455 and 0.6495.”
1-3 WEEKS VIEW: “The next from our replace yesterday (04 Aug, spot at 0.6465) continues to be legitimate: ‘Final Thursday (31 Jul, spot at 0.6445), we indicated that AUD ‘might probably break under 0.6405 and take a look at June’s low, close to 0.6375.’ We additionally indicated that ‘to take care of the momentum buildup, AUD should maintain under 0.6520 (‘sturdy resistance’ degree).’ After dropping to a low of 0.6419 on Friday, AUD rose sharply, reaching a excessive of 0.6493. Downward momentum is slowing, a breach of 0.6520 would point out AUD will not be breaking under 0.6405.”
