The Australian Dollar (AUD) is currently positioned to test the level of 0.6670, with analysts from UOB Group indicating that the major support at 0.6655 is unlikely to be reached. The recent movements in the currency suggest that AUD is engaging in a range-trading phase, with projections indicating fluctuations between 0.6655 and 0.6745. Analysts Quek Ser Leang and Peter Chia have provided insights into these market dynamics, reflecting on the broader economic context.
Recent trading activity has shown that the AUD rose to a high of 0.6722 two days ago. Yesterday, it settled at 0.6705, with analysts noting that the momentum was insufficient to indicate a sustained rise. Looking ahead, the expectation is that the AUD will operate within a higher range, specifically between 0.6685 and 0.6730.
During the New York trading session, the AUD fluctuated between 0.6673 and 0.6727, ultimately closing at 0.6681. The downward momentum observed is not strong enough to suggest a significant decline, reinforcing the likelihood of a test at 0.6670 rather than a drop to the major support level of 0.6655. Current resistance levels are identified at 0.6700, followed closely by 0.6715.
Market Outlook and Trading Range
In the context of a broader analysis, UOB Group’s analysts reaffirm their perspective from last Friday, stating that the AUD’s price movements are indicative of a range-trading phase. This observation aligns with the earlier noted expectations of trading between 0.6655 and 0.6745. The outlook remains consistent, suggesting that significant price action may not occur outside these parameters in the near term.
As market participants analyze these movements, the Australian Dollar’s performance against the US Dollar remains a critical focus. The recent fluctuations and resistance levels indicate a cautious yet strategic approach to trading, particularly as investors assess the implications of global economic trends.
In summary, current AUD trading is likely to remain subdued within the established range, with the potential for minor upward tests. Traders are advised to monitor the key levels closely as they navigate the evolving market landscape.
