A slight improve in downward momentum is more likely to result in a decrease vary of 0.6400/0.6465 as a substitute of a sustained decline. Within the longer run, to proceed to rise, Australian Greenback (AUD) should break and maintain above 0.6515, UOB Group’s FX analysts Quek Ser Leang and Peter Chia notice.
Above 0.6515, AUD to proceed to rise
24-HOUR VIEW: “Whereas we anticipated ‘additional AUD power’ yesterday, we indicated that ‘any advance is probably going half of a better vary of 0.6420/0.6515.’ After rising to 0.6501, AUD pulled again to 0.6424 earlier than closing on a mushy notice at 0.6429, a declilne of 0.66%. There was a slight improve in downward momentum, however as a substitute of a sustained decline, AUD is extra more likely to commerce in a decrease vary of 0.6400/0.6465.”
1-3 WEEKS VIEW: “AUD surged two days in the past, closing at 0.6472, up sharply by 1.57%. Yesterday, when AUD was at 0.6470, we highlighted the next: ‘After the sharp rally, upward momentum has strengthened, however this time round, it’s not sufficient to point a sustained rise. To proceed to rise, AUD should break and maintain above 0.6515. The possibility of AUD breaking clearly above 0.6515 will improve within the subsequent few days, offered that the ‘robust help’ stage, at present at 0.6370, isn’t breached.’ Our replace stays legitimate.”
