AUD/USD: Is set to test support at 0.6710 – UOB Group

The Australian Dollar (AUD) is likely to trade in a sideways range of 0.6710/0.6750. Upward momentum has faded; downward momentum has increased slightly, but AUD is unlikely to break 0.6680, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann note.

Rangebound within 0.6710/0.6750 for now

24-HOUR VIEW: “Yesterday, we expected AUD to drop further to 0.6705. Our expectation did not materialise, as it dropped to 0.6722, closing at 0.6729 (- 0.07%). In Asian trade today, AUD dropped briefly to 0.6715 before rebounding. The price movements did not result in any increase in momentum, and AUD is unlikely to weaken much further. Today, we expect it to trade sideways between 0.6710 and 0.6750.”

1-3 WEEKS VIEW: “Our update from yesterday (17 Jul, spot at 0.6730) is still valid. As highlighted, not only has the recent upward momentum faded, but downward momentum has also increased slightly. AUD is likely to trade with a downward bias, but at this time, it does not appear to have enough momentum to break the major support at 0.6680. On the upside, a breach of 0.6775 (no change in ‘strong resistance’ level from yesterday) would indicate that the current modest downward momentum has eased.”