The Australian Greenback (AUD) may edge increased, however it’s unlikely to have the ability to break above 0.6930. Within the longer run, AUD has to interrupt and stay above 0.6930 earlier than an advance to 0.6980 might be anticipated, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann observe.
AUD has to stay above 0.6930 to advance in direction of 0.6980
24-HOUR VIEW: “We highlighted yesterday that AUD ‘may dip under 0.6800 earlier than stabilisation might be anticipated.’ Nonetheless, AUD rebounded strongly, reaching a excessive of 0.6905. The sturdy rebound has resulted in a rise in momentum, albeit not a lot. As we speak, we count on AUD to edge increased, however it’s unlikely to have the ability to break above 0.6930. Assist is at 0.6875; a breach of 0.6840 would imply that the present gentle upward stress has eased.”
1-3 WEEKS VIEW: “After holding a constructive AUD view for greater than per week, we shifted to a impartial stance yesterday (26 Sep, spot at 0.6825), indicating that ‘the advance in AUD has come to an finish, and it’s more likely to commerce between 0.6750 and 0.6900 for now.’ We did count on AUD to reverse its decline because it soared to a excessive of 0.6905. Regardless of the advance, upward momentum has not elevated sufficiently to point that AUD is able to rise in a sustained method. AUD has to interrupt and stay above 0.6930 earlier than an advance to 0.6980 might be anticipated. The possibility of AUD breaking clearly above 0.6930 will stay intact, offered that it stays above 0.6820.”
