The Australian Dollar (AUD) is expected to trade in a range of 0.6490/0.6535. In the longer run, if AUD breaks below 0.6470, it would mean it is not rebounding further, UOB Group’s FX strategists Quek Ser Leang and Lee Sue Ann note.
AUD has a chance of breaking below 0.6470
24-HOUR VIEW: “Yesterday, we expected AUD to trade between 0.6485 and 0.6535. AUD subsequently traded in a narrower range than expected (0.6498/0.6532), closing largely unchanged at 0.6511 (+0.09%). The price action still appears to be part of a range trading phase. Today, we expect a range of 0.6490/0.6535.”
1-3 WEEKS VIEW: “In our most recent narrative from two days ago (20 Nov, spot at 0.6530), we highlighted that ‘the current price action is part of a rebound that could reach 0.6560, possibly 0.6600.’ AUD has not been able to make any headway on the upside. From here, if AUD breaks below 0.6470 (‘strong support’ level previously at 0.6460), it would indicate that it is not rebounding further.”
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