The Australian Dollar (AUD) could rise, but it is unlikely to be able to break above 0.6930. Longer term, AUD needs to break and hold above 0.6930 before a move towards 0.6980 can be expected, note UOB Group FX analysts Quek Ser Leang and Lee Sue Ann.
AUD has to stay above 0.6930 to advance towards 0.6980
24 HOURS VIEW: “Yesterday we highlighted that the AUD ‘could fall below 0.6800 before stabilization can be expected.’ However, the AUD rebounded strongly, reaching a high of 0.6905. The strong rebound has resulted in an increase in momentum, although not by much. Today, we expect the AUD to rise, but it is unlikely that it can break above 0.6930. Support is at 0.6875; a break of 0.6840 would mean that the current slight bullish pressure has eased.”
1-3 WEEKS VIEW: “After maintaining a positive view on the AUD for over a week, we switched to a neutral stance yesterday (September 26, spot at 0.6825), indicating that ‘the AUD advance has come to an end, and is likely to trade between 0.6750 and 0.6900 for now.’ We did not expect the AUD to reverse its decline as it shot to a high of 0.6905. Despite the advance, the bullish momentum has not increased enough to indicate that the AUD is ready to rise on a sustained basis. and hold above 0.6930 before a move towards 0.6980 can be expected. The possibility of AUD breaking clearly above 0.6930 will remain intact, as long as it stays above 0.6820.”
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.
