To trade in a sideways range of 0.6715/0.6770 – UOB Group

The Australian dollar (AUD) is likely to trade in a sideways range of 0.6715/0.6770. Longer term, the trend for AUD remains down; a clear break below 0.6700 would suggest further downside, potentially to 0.6670, note UOB Group FX analysts Quek Ser Leang and Lee Sue Ann.

Bias for AUD remains down

24-HOUR VIEW: “The headline of our update yesterday was ‘A break of 0.6700 not out of the question; Given the mild momentum, the AUD may not be able to maintain a foothold below this level. However, the AUD failed to break 0.6700, trading choppily between 0.6702 and 0.6743 before closing at 0.6742 (+0.35%). The price action is probably part of a sideways trading phase, probably in a range of 0.6715/0.6770.”

WEEKS 1-3: “We highlighted yesterday (October 10 at 0.6720) that ‘while there has been no significant increase in momentum, the trend for the AUD remains down’. We added that “a clear break below 0.6700 would suggest the AUD could fall further, potentially to 0.6670” and “the downside bias is intact provided the AUD remains below 0.6785 (strong resistance level “). AUD later fell to 0.6702, then bounced back. We continue to have the same opinion for now.”