Rather than weakening, the Australian dollar (AUD) is more likely to trade in a range between 0.6485 and 0.6530. In the longer term, the AUD is likely to trade with downside towards 0.6460, say UOB Group FX analysts Quek Ser Liang and Peter Chia.
AUD more likely to trade between 0.6485 and 0.6530
24-hour view: “Following the AUD’s decline to 0.6482 two days ago, we highlighted yesterday that ‘further downside is likely for the AUD’. However, we pointed out that ‘key support at 0.6460 may be out of reach for now.’ 0.6466 and then reversed to 0.6519. AUD closed marginally higher at 0.6509 (+0.25%).
1-3 week view: “Yesterday (November 18, spot at 0.6490), we highlighted that “downward momentum is starting to build, and the AUD is likely to trade with a downside bias towards 0.6460.” The AUD subsequently fell to 0.6466 before rebounding. Although there has been no further increase in downside momentum, the downtrend remains intact until There is no breach of 0.6540 (no change in ‘strong resistance’ level).
