AUD/USD: Major support at 0.6430 is unlikely to come under threat – UOB Group

There is scope for Australian Dollar (AUD) to decline to 0.6460 against US Dollar (USD); the major support at 0.6430 is unlikely to come under threat. In the longer run, AUD appears to have moved into a range-trading phase between 0.6430 and 0.6550, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

AUD appears to have moved into a range between 0.6430 and 0.6550

24-HOUR VIEW: "We expected AUD to 'trade in a range between 0.6490 and 0.6535' yesterday. However, AUD dipped to 0.6478, rebounded to 0.6534, and then closed at 0.6532. At the time of writing in the early Asian session, AUD has fallen sharply from the closing level. The decline has scope to extend to 0.6460. The major support at 0.6430 is unlikely to come under threat. Resistance levels are at 0.6515 and 0.6535."

1-3 WEEKS VIEW: "We have expected a positive bias in AUD since early last week. In our latest narrative from last Friday (06 Jun, spot at 0.6510), we indicated that 'the bias remains on the upside, but it remains to be seen if AUD can break clearly above 0.6555.' Two days ago, AUD rose briefly to 0.6546. Yesterday, AUD dipped below our ‘strong support’ level at 0.6480 (low of 0.6478). The breach of our ‘strong support’ level indicates that the upside bias has faded. The current price movements are likely the early stages of a range-trading phase, and we expect AUD to trade between 0.6430 and 0.6550 for the time being."