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.
Further range trading seems likely
24-HOUR VIEW: “We expected AUD to ‘trade in a range of 0.6510/0.6535’ yesterday. Our view of range trading was not wrong, even though AUD traded in a lower and narrower range of 0.6502/0.6529. Further range trading seems likely. Today, we expect AUD to trade between 0.6500 and 0.6530.”
1-3 WEEKS VIEW: “We have expected range-trading since last week. Yesterday (11 August, spot at 0.6520), we indicated that ‘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.’ We continue to hold the same view.”
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