Australian Dollar (AUD) is expected to trade in a range of 0.6510/0.6535. In the longer run, a narrower range of 0.6470/0.6555 is likely enough to contain the price movements for now, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
AUD to trade in a range
24-HOUR VIEW: “We indicated last Friday that ‘although upward momentum appears lackluster, the bias for today is on the upside.’ However, we pointed out that ‘the major resistance at 0.6555 is likely out of reach.’ The subsequent price movements did not turn out as expected, as AUD traded in a relatively tight range of 0.6513/0.6535. AUD closed marginally higher by 0.02% at 0.6525. The price action provides no fresh clues. Today, we expect AUD to trade in a range of 0.6510/0.6535.”
1-3 WEEKS VIEW: “In our most recent narrative from last Thursday (07 Aug, spot at 0.6500), we indicated that ‘the current price movements are likely part of a range trading phase, probably between 0.6450 and 0.6555.’ While we continue to expect range trading, a narrower range of 0.6470/0.6555 is likely enough to contain the price movements for now.”
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