Instead of continuing to weaken, Australian Dollar (AUD) is more likely to trade in a range between 0.6485 and 0.6530. 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 more likely to trade between 0.6485 and 0.6530

24-HOUR VIEW: "Following the decline in AUD to 0.6482 two days ago, we highlighted yesterday that 'there is a chance for AUD to drop further'. However, we pointed out that 'the major support at 0.6460 could be out of reach for now'. We added, 'to keep the momentum going, AUD must hold below 0.6520'. Our assessments turned out to be correct, as AUD dropped to a low of 0.6466 and then rebounded to 0.6519. AUD closed modestly higher at 0.6509 (+0.25%). The rebound from oversold conditions suggests that instead of continuing to weaken today, AUD is more likely to trade in a range between 0.6485 and 0.6530."

1-3 WEEKS VIEW: "Yesterday (18 Nov, spot at 0.6490), we highlighted that “downward momentum is starting to build, and AUD is likely to trade with a downward bias toward 0.6460.” AUD subsequently dropped to 0.6466 before rebounding. While there has been no further increase in downward momentum, the downward bias remains intact as long as 0.6540 (no change in ‘strong resistance’ level) is not breached."