Australian Dollar (AUD) is likely to range-trade between 0.6480 and 0.6530. Further declines in AUD still appear likely; the next level to watch is 0.6440, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

The next level to watch is 0.6440

24-HOUR VIEW: "On Tuesday, AUD plummeted to a low of 0.6443 and then rebounded. Yesterday, we stated that 'the immediate downward pressure has eased with the rebound.' We expected AUD to “range-trade between 0.6460 and 0.6520.' AUD subsequently traded in a range of 0.6482/0.6523. Momentum indicators are mostly flat, and we continue to expect range-trading today, most likely between 0.6480/0.6530."

1-3 WEEKS VIEW: "In our most recent narrative from Monday (13 Oct, spot at 0.6500), indicated that 'further declines in AUD still appear likely, and the next level to watch is 0.6440.' After AUD subsequently dropped to a low of 0.6443 and then rebounded, we highlighted the following yesterday: 'Despite the relatively sharp decline, there has been no clear increase in downward momentum. That said, as long as 0.6545 (‘strong resistance’ level) holds, there is still a chance for AUD to test 0.6440.' Our view remains unchanged for now."