Further consolidation appears likely; softer underlying tone suggests a lower range of 0.6585/0.6625. In the longer run, Australian Dollar (AUD) is neutral now, and it is likely to trade between 0.6545 and 0.6655 for now, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
Softer underlying tone suggests a lower range of 0.6585/0.6625
24-HOUR VIEW: “AUD rose sharply to a high of 0.6629 two days ago. Yesterday, we highlighted the following: ‘The sharp rise appears to be overdone. This, combined with overbought conditions, suggests that instead of continuing to advance, AUD is more likely to consolidate today, probably between 0.6590 and 0.6630.’ Our view turned out to be correct, as AUD traded within a range of 0.6590.0.6929. AUD closed largely unchanged at 0.6611 (-0.04%). Further consolidation appears likely, but the softer underlying tone suggests AUD is likely to trade in a lower range of 0.6585/0.6625.”
1-3 WEEKS VIEW: “We revised our view yesterday (01 Oct, spot at 0.6615), indicating that we ‘are neutral on AUD and expect it to trade between 0.6545 and 0.6655.’ There is no change in our view.”
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