It seems likely that the AUD/USD remains within a short-term range limit, comment Quek Ser Leang, market strategist, and Peter Chia, senior currency strategist, at UOB Group.
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24-hour outlook: Last Friday we noted that “there is room for the AUD to test 0.6400, but a clear break above this level is unlikely” In New York trading, the AUD fell sharply to 0.6313 before rally to a high of 0.6400. The Australian Dollar closed at 0.6385 (+0.23%), but was trading lower in the early stages of Asian trade. That said, there is still room for AUD to test 0.6400 today. However, it seems unlikely that it will break above this level. Support is seen at 0.6335, followed by 0.6315.
Next 1-3 weeks: Last Tuesday (Oct 3 at 0.6365), we held the view that “AUD is likely to weaken to 0.6330, possibly 0.6280”. On Friday (Oct 6), AUD tested our “strong resistance” level at 0.6400. Although the level has not been clearly surpassed, the bearish pressure has moderated modestly. In other words, AUD weakness has stabilized. From here, the AUD is likely to trade within a range, probably between 0.6280 and 0.6440.
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.
