There has been a slight pick-up in momentum; the Australian Dollar (AUD) needs to break clearly above 0.6600 before a further advance towards 0.6660 can be expected, note UOB Group FX Strategists Quek Ser Leang and Peter Chia.
The next level to watch is 0.6660
24-HOUR VIEW: “Yesterday, we expected the AUD to consolidate between 0.6545 and 0.6595. However, the AUD traded in a higher range of 0.6565/0.6505, closing marginally lower at 0.6586 (-0.10%). The price action did not result in an increase in momentum either to the downside or the upside. Today, we expect the AUD to trade sideways, likely in a range of 0.6560/0.6600.”
OUTLOOK 1-3 WEEK: “We continue to hold the same view as yesterday (August 12, pair at 0.6570). As highlighted, recent price action has resulted in a slight increase in momentum, but not enough to suggest the start of a sustained advance. Overall, AUD needs to break and hold above 0.6600 before a further advance can be expected. The probability of AUD clearly breaking above 0.6600 will increase in the coming days, provided 0.6520 (the ‘strong support’ was at 0.6510 yesterday) is not broken. Looking ahead, if AUD clearly breaks above 0.6600, the next level to watch is 0.6660.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
