Australian Dollar (AUD) is likely to range-trade between 0.6440 and 0.6480. In the longer run, the price action suggests there is scope for AUD to test 0.6405, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Scope for AUD to test 0.6405

24-HOUR VIEW: "After AUD dropped sharply to a low of 0.6436 last Thursday, we highlighted on Friday that “while the sharp drop appears excessive, there is scope for AUD to weaken further to 0.6430.” However, we highlighted that “the major support at 0.6405 is unlikely to come under threat today.” We were not wrong, as AUD dropped to a low of 0.6422, then rebounded and closed at 0.6457 (+0.26%). The rebound amid slowing momentum suggests that, instead of continuing to weaken, AUD is more likely to range-trade today, probably between 0.6440 and 0.6480."

1-3 WEEKS VIEW: "We turned negative on AUD early last week. Tracking the subsequent decline, we highlighted last Friday (21 Nov, spot at 0.6450) that 'the price action suggests AUD could test 0.6405'. We continue to hold the same view as long as the ‘strong resistance’ at 0.6510 (no change in level from last Friday) is not breached."