AUD/USD: Likely to trade in a sideways range of 0.6460/0.6510 – UOB Group

Instead of continuing to decline, Australian Dollar (AUD) is more likely to trade in a sideways range of 0.6460/0.6510 against US Dollar (USD). In the longer run, further range trading still seems likely; a tighter 0.6430/0.6550 range should be sufficient to contain price movements for now, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Further range trading still seems likely

24-HOUR VIEW: "The sharp drop in AUD to a low of 0.6446 was unexpected, as we had anticipated range-trading. That said, after rebounding sharply from the low, the immediate downward pressure appears to have subsided. In other words, instead of continuing to decline, AUD is more likely to trade sideways today, probably in a range of 0.6460/0.6510."

1-3 WEEKS VIEW: "Our most recent narrative was from one week ago (13 Jun, spot at 0.6495), in which 'the current price movements are likely the early stages of a range-trading phase between 0.6430 and 0.6550.' While further range trading still seems likely, a tighter 0.6430/0.6550 range should be sufficient to contain price movements for now. Looking ahead, if AUD were to break below 0.6430, it could potentially trigger a deeper pullback."