In the opinion of UOB Group economists Lee Sue Ann and Quek Ser Leang, a drop below the 0.6300 zone in the AUD/USD seems unlikely at the moment.
24 hour perspective: Yesterday we highlighted that the AUD could still test 0.6340. Our view did not materialize as it continued to trade calmly between 0.6363 and 0.6394 before closing virtually unchanged (0.6377, -0.09%). Momentum indicators are turning ‘flat’, and the AUD could continue to trade in a range, probably between 0.6355 and 0.6400.
Next 1-3 weeks: Our last analysis dates back to two days ago (September 6, pair at 0.6375), in which we highlighted that although further weakness in the AUD seemed likely, the probability of it breaking clearly below 0.6300 was not high. The AUD traded relatively calm manner over the last two days. We continue to maintain the same opinion for now. Upward, if AUD breaks above 0.6430 (no change to yesterday’s ‘strong resistance’ level), would indicate that it is not weakening further.
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.
