The Australian Dollar (AUD) is projected to trade within a narrow range of 0.6530 to 0.6575, according to UOB Group FX strategists Quek Ser Leang and Peter Chia. While the recent weakness in the AUD appears overextended both in terms of time and price, a stabilization is anticipated only if the currency breaches the 0.6615 level.
Short-Term Outlook: AUD Set to Drift Towards 0.6615
24-Hour View:
“Yesterday, we suggested that the AUD might rebound, though we expected strong resistance at the 0.6580 level, with support at 0.6535 and 0.6520,” the strategists noted. However, the AUD traded between 0.6524 and 0.6568, closing nearly unchanged at 0.6549 (+0.03%). Given the lack of increased momentum in either direction, we anticipate the AUD will trade sideways within the 0.6530 to 0.6575 range today.
1-3 Weeks View:
“Our update from last Friday (26 July, spot at 0.6545) remains valid,” the strategists reiterated. They highlighted that the AUD’s weakness, which began about two weeks ago, seems to be overextended. Stabilization of this trend would require a breach of the 0.6615 level. Until this strong resistance level is surpassed, there remains a slight possibility, albeit low, that the AUD could decline further to 0.6480.
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