Momentum indicators are nonetheless largely flat; Australian Greenback (AUD) might proceed to consolidate in opposition to US Greenback (USD), most definitely in a spread of 0.6490/0.6535. Within the longer run, downward momentum has constructed additional, however AUD could consolidate first earlier than trying to interrupt under 0.6455, UOB Group’s FX analysts Quek Ser Leang and Peter Chia observe.
Momentum indicators are nonetheless largely flat
24-HOUR VIEW: “AUD dropped to a low of 0.6455 final Thursday after which rebounded. On Friday, we indicated that ‘the rebound in oversold circumstances signifies AUD is unlikely to weaken additional.’ We held the view that AUD ‘is extra more likely to consolidate in a spread of 0.6475/0.6535.’ Our view of consolidation was not flawed, as AUD traded between 0.6487 and 0.6541. Momentum indicators are nonetheless largely flat, and AUD might proceed to consolidate in the present day, most definitely in a spread of 0.6490 and 0.6535.”
1-3 WEEKS VIEW: “We revised our AUD view to unfavourable final Wednesday (16 Jul, spot at 0.6520), indicating that ‘there was a tentative buildup in momentum, and AUD is more likely to edge decrease to 0.6480.’ After AUD dropped to a low of 0.6455, we highlighted the next final Friday (18 Jul, spot 0.6500): ‘Downward momentum has constructed additional, however given the oversold short-term circumstances, AUD could consolidate for a few days. Total, so long as 0.6560 (‘sturdy resistance’ degree) just isn’t breached, there’s potential for AUD to interrupt under 0.6455. Trying forward, the following degree to observe under 0.6455 is 0.6420.’ Our view stays unchanged.”
