Set to test the 0.6660 level – UOB Group

The Australian dollar (AUD) is expected to trade in a range, likely between 0.6580 and 0.6640, or a wider range between 0.6545 and 0.6660, note UOB Group’s Quek Ser Leang and Lee Sue Ann.

Bulls can push towards 0.6660

24 HOUR VIEW: “Following the sharp pullback in the AUD two days ago, I pointed out yesterday that ‘the sharp pullback looks a little overdone and the AUD is unlikely to weaken much further.’ We expected the AUD to “trade in a range of 0.6580/0.6625”. AUD subsequently traded in a wider 0.6570/0.6635 range, closing slightly higher at 0.6610 (+0.20%). The price action did not result in an increase either down or up. Today, we continue to expect the AUD to trade in a range, likely between 0.6580 and 0.6640.”

WEEKS 1-3: “Yesterday (August 15, point at 0.6600), I indicated that ‘if the AUD breaks below 0.6580, it would suggest that it is not ready to move up to 0.6660.’ AUD later fell to 0.6570 and then bounced back. Momentum indicators are turning neutral and the AUD is likely to trade sideways between 0.6545 and 0.6660 for now.”