The Australian Dollar (AUD) may continue to weaken, though its ability to break through the critical support level of 0.6425 remains uncertain, according to UOB Group FX analysts Quek Ser Leang and Lee Sue Ann.
24-Hour Outlook: The analysts suggest that the significant support at 0.6425 is unlikely to be breached in the immediate term. Despite an unexpected rebound on Friday that saw the AUD rise to a high of 0.6547, it closed modestly higher at 0.6515, marking a 0.15% increase. The current tone appears slightly soft, with expectations that the AUD might edge lower today, potentially falling below last week’s low of 0.6480. Resistance is seen at 0.6515, with further resistance at 0.6535.
1-3 Weeks Outlook: The previous update from August 2, when the AUD was at 0.6490, remains valid. While the AUD may continue to weaken, it is unclear if it possesses sufficient momentum to breach the critical support at 0.6425. The analysts noted that only a rise above 0.6550—unchanged from last Friday’s ‘strong resistance’ level—would signal an end to the weakness that began in mid-July.
Related Topics:
