AUD/USD: Above 0.6520, AUD to stop weakening further – UOB Group

The Australian Dollar (AUD) is expected to trade in a range between 0.6470 and 0.6520. In the longer run, downward momentum is slowing; a break of 0.6520 would mean that AUD is not weakening further, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

AUD is expected to trade between 0.6470 and 0.6520

24-HOUR VIEW: “Yesterday, we noted that ‘As momentum indicators are turning flat, further sideways trading appears likely, probably in a range of 0.6445/0.6485.’ The subsequent advance that sent AUD to a high of 0.6510 was unexpected. The advance did not result in any significant increase in momentum, and AUD is unlikely to rise much further. Today, AUD is expected to trade in a range between 0.6470 and 0.6520.”

1-3 WEEKS VIEW: “We revised our view to negative in the middle of last week. In our latest narrative from last Friday (15 Nov, spot at 0.6450), we highlighted that ‘further AUD weakness still appears likely.’ We also highlighted that ‘The next level to watch is 0.6400.’ Yesterday, AUD rebounded to a high of 0.6510, not far below our ‘strong resistance’ level of 0.6520. Downward momentum is slowing, a break above 0.6520 would mean that instead of continuing to weaken, AUD is more likely to consolidate.”