Market news
02.08.2023, 06:52

AUD/USD: Door open to a probable drop to 0.6540 – UOB

In the view of Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia at UOB Group, further downside could force AUD/USD to slip back towards the 0.6540 region in the short-term horizon.

Key Quotes

24-hour view: The outsized selloff of 1.57% (NY close of 0.6613) in AUD yesterday came as a surprise (we were of the view that AUD could advance further but is unlikely to break 0.6785). Not surprisingly, conditions are severely oversold. However, the weakness in AUD has not stabilised. Today, AUD could break below June’s low of 0.6595. In view of the oversold conditions, the next major support at 0.6540 is unlikely to come under threat. On the upside, if AUD breaks above 0.6655 (minor resistance is at 0.6635), it would mean that the weakness in AUD has stabilised.  

Next 1-3 weeks: In our most recent narrative from Monday (31 Jul, spot at 0.6660), we highlighted that “there is a chance, albeit not a high one, for AUD to drop to June’s low of 0.6595.” Yesterday, AUD nosedived to a low of 0.6603 before closing on a weak note at 0.6613 (-1.57%). The boost in downward momentum suggests a break of 0.6595 will not be surprising. A break of 0.6595 will shift the focus to 0.6540. Overall, the weakness in AUD that started more than a week ago is intact unless AUD breaks above 0.6710 (‘strong resistance’ has moved sharply lower from yesterday’s level of 0.6785).

© 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.

AML Website Summary

Risk Disclosure

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.

Privacy Policy

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
Feedback
Live Chat E-mail
Up
Choose your language / location