There is a chance for Australian Dollar (AUD) to drop further, but the major support at 0.6460 could be out of reach for now. In the longer run, AUD is likely to trade with a downward bias toward 0.6460, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

AUD is likely to trade with a downward bias

24-HOUR VIEW: "When AUD was at 0.6535 in the early Asian session yesterday, we indicated that 'the price movements still appear to be part of a range trading phase, and we continue to expect AUD to trade between 0.6510 and 0.6560'. We did not expect AUD to drop to a low of 0.6482. The decline has gathered momentum, and today, there is a chance for AUD to drop further. However, the major support at 0.6460 could be out of reach for now. To keep the momentum going, AUD must hold below 0.6520, with minor resistance at 0.6505."

1-3 WEEKS VIEW: "We have expected AUD to trade in a range since early last week (as annotated in the chart below). In our latest narrative from last Friday (14 Nov, spot at 0.6530), we highlighted that we 'continue to expect AUD to trade in a 0.6490/0.6580 range'. Yesterday, AUD fell and broke below 0.6490 (low of 0.6482). Downward momentum is starting to build, and AUD is likely to trade with a downward bias toward 0.6460. We will maintain our view as long as 0.6540 (‘strong resistance’ level) holds."