Australian Dollar (AUD) could test 0.6460; the major support at 0.6445 is unlikely to come under threat. In the longer run, outlook for AUD is negative now, but last month’s low near 0.6445 may not come into view so soon, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Outlook for AUD is negative now
24-HOUR VIEW: "Our view for AUD to 'consolidate in a range of 0.6485/0.6525' yesterday was incorrect, as AUD dropped to a low of 0.6464. Despite the relatively sharp drop, downward momentum has not increased significantly. That said, AUD could test 0.6460, but based on the current momentum, the major support at 0.6445 is unlikely to come under threat. On the upside, resistance levels are at 0.6495 and 0.6510."
1-3 WEEKS VIEW: "Two days ago (05 Nov, spot at 0.6485), we stated that 'the outlook for AUD is negative now, but last month’s low near 0.6445 may not come into view so soon'. We added, 'to keep the momentum going, AUD must hold below the ‘strong resistance’ level, now at 0.6540'. We maintain our negative AUD view, but we are revising the ‘strong resistance’ level downward to 0.6525 from 0.6540."
