AUD/USD is now expected to trade within the 0.6390-0.6525 range in the next few weeks, according to Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group.
24-hour view: AUD popped briefly to a high of 0.6522 in NY trade last Friday before falling back down to end the day at 0.6450 (-0.54%). Despite the sharp drop, downward momentum has not improved much. That said, AUD could edge lower today, but it unlikely to break the strong support at 0.6420. Resistance is at 0.6465, followed by 0.6480.
Next 1-3 weeks: Our latest update was from last Thursday (31 Aug, spot at 0.6480). At that time, we were of the view that “if AUD breaks and stays above 0.6500, the focus will shift to 0.6550.” While AUD broke above 0.6500, it did not close above 0.6500. On Friday, AUD fell by 0.54% (0.6450). Upward pressure appears to have eased, and AUD is unlikely to strengthen. For now, AUD is more likely to trade in a range of 0.6390/0.6525.