AUD/USD: Likely to trade in a sideways range of 0.6445/0.6485 – UOB Group

Momentum indicators are turning flat; Australian Dollar (AUD) is likely to trade in a sideways range of 0.6445/0.6485. In the longer run, further AUD weakness still appears likely; the next level to watch is 0.6400, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

The next level to watch is 0.6400

24-HOUR VIEW: “When AUD was at 0.6450 last Friday, we highlighted that ‘provided that 0.6490 remains intact, AUD could decline further.’ However, we pointed out that ‘the major support at 0.6400 is unlikely to come into view.’ Our expectations did not turn out, as AUD traded sideways between 0.6443 and 0.6482, closing at 0.6465 (+0.16%). As momentum indicators are turning flat, further sideways trading appears likely, probably in a range of 0.6445/0.6485.”

1-3 WEEKS VIEW: “We indicated last Friday (15 Nov, spot at 0.6450) that ‘further AUD weakness still appears likely.’ We also highlighted that ‘The next level to watch is 0.6400.’ Although downward momentum has slowed somewhat, we will continue to hold the same view for now. Overall, only a breach of 0.6520 (no change in ‘strong resistance’ level) would mean that the weakness in AUD has stabilised.”