Additional consolidation in Australian Greenback (AUD) nonetheless appears doubtless towards US Greenback (USD), in all probability between 0.6505 and 0.6555. Within the longer run momentum buildup is fading, however solely a breach of 0.6585 would point out that AUD is prone to vary commerce as a substitute of edging decrease, UOB Group’s FX analysts Quek Ser Leang and Peter Chia observe.
Above 0.6585, AUD is prone to vary commerce
24-HOUR VIEW: “In early Asian commerce yesterday, when AUD was at 0.6525, we identified that ‘the value actions nonetheless seem like a part of a consolidation section.’ We anticipated AUD ‘to commerce in a spread of 0.6495/0.6555.’ AUD then consolidated in a good vary between 0.6510 and 0.6548 earlier than closing largely unchanged at 0.6535 (+0.07%). Additional consolidation nonetheless appears doubtless at present, in all probability between 0.6505 and 0.6555.”
1-3 WEEKS VIEW: “Two days in the past (08 Jul, spot at 0.6515), we famous that “downward momentum is beginning to construct.” We anticipated AUD “to edge decrease towards 0.6460.’ AUD traded in a quiet method over the previous couple of days, however though the momentum buildup seems to be fading, solely a breach of 0.6585 (no change in ‘sturdy resistance’ stage) would imply AUD is prone to vary commerce as a substitute of edging decrease.”
