There may be scope for Australian Greenback (AUD) to check 0.6520 earlier than a pullback could be anticipated. Within the longer run, the present value actions are probably a part of a 0.6450/0.6555 vary buying and selling part, UOB Group’s FX analysts Quek Ser Leang and Peter Chia notice.
Upward momentum has not elevated a lot
24-HOUR VIEW: “Yesterday, we anticipated to ‘commerce in a sideways vary of 0.6455/0.6490.’ As an alternative of buying and selling sideways, AUD rose to a excessive of 0.6509, closing on a agency notice at 0.6502 (+0.51%). Regardless of the advance, upward momentum has not elevated a lot. That mentioned, there may be scope for AUD to check 0.6520 earlier than a pullback could be anticipated. Help is at 0.6485, adopted by 0.6470.”
1-3 WEEKS VIEW: “Now we have held a damaging AUD stance since early final week. In our most up-to-date narrative from Monday (04 Aug, spot at 0.6465), we highlighted that ‘downward momentum is slowing, a breach of 0.6520 would point out AUD isn’t breaking under 0.6405.’ Yesterday, AUD rose to a excessive of 0.6509. Though our ‘sturdy resistance’ at 0.6520 has not been breached but, downward momentum has light. The present value actions are probably a part of a variety buying and selling part, most likely between 0.6450 and 0.6555.”
