Instead of extending its decline, Australian Dollar (AUD) is more likely to range-trade between 0.6670 and 0.6710. In the longer run, the current price movements are likely part of a range-trading phase between 0.6655 and 0.6745, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Current price movements are likely part of a range-trading phase

24-HOUR VIEW: "After AUD dropped to 0.6682 last Thursday, we highlighted the following on Friday: 'AUD could retest the 0.6680 level before a recovery can be expected. While a break below 0.6680 is not ruled out, based on the current momentum, any further decline is unlikely to reach 0.6655'. Our assessments were not wrong, as AUD fell briefly to 0.6664 during the NY session before closing at 0.6687 (-0.18%). Downward momentum appears to be fading, and instead of extending its decline, AUD is more likely to range-trade today, probably between 0.6670 and 0.6710."

1-3 WEEKS VIEW: "We highlighted last Friday (09 Jan, spot at 0.6700) that 'the current price movements are likely part of a range-trading phase between 0.6655 and 0.6745'. There is no change in our view. Looking ahead, with the underlying tone softening, the risk of AUD breaking below 0.6650 before 0.6745 appears higher."