- Analytics
- News and Tools
- Market News
- AUD/USD risks extra weakness for the time being – UOB
AUD/USD risks extra weakness for the time being – UOB
The continuation of the downtrend seems a probable scenario for AUD/USD in the short-term horizon, suggest UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.
Key Quotes
24-hour view: Last Friday, we indicated that AUD “is under mild downward pressure” and while we expected it to trade lower, we were of the view that it “is unlikely to threaten the major support at 0.6700.” However, AUD broke below 0.6700 and plunged to a low of 0.6663. Not surprisingly, after the sharp and swift decline, conditions are severely oversold. However, as long as AUD stays below 0.6715 (minor resistance is at 0.6700), it could dip to 0.6650 before a more sustained rebound is likely. The next support at 0.6620 is highly unlikely to come under threat.
Next 1-3 weeks: We shifted from a positive to neutral stance in AUD last Wednesday (21 Jun, spot at 0.6790) and we held the view that AUD “is likely to trade in a range between 0.6700 and 0.6880 for now.” We did not expect the sharp selloff on Friday as AUD plunged by 1.14% (NY close of 0.6680), its biggest 1-day drop since early March. Further AUD weakness appears likely but the sharp decline appears to be running ahead of itself and it might take a while before 0.6620 comes into view. In order to maintain the rapid buildup in momentum, AUD must stay below the ‘strong resistance’ level, currently at 0.6755.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
