AUD/USD is under mild downward pressure – UOB Group

Australian Dollar (AUD) is under mild downward pressure against US Dollar (USD); it may edge lower but is unlikely to reach 0.6515. In the longer run, AUD is likely still trading in a range of 0.6515/0.6615, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

AUD unlikely can reach 0.6515

24-HOUR VIEW: "Yesterday, we expected AUD to 'trade between 0.6545 and 0.6595.' AUD traded in a narrower range than expected (0.6543/0.6588), closing on a soft note at 0.6545 (-0.44%). The slight increase in momentum indicates AUD may edge lower today, but any decline is unlikely to reach 0.6515. Resistance is at 0.6560; a breach of 0.6575 would suggest that the current mild downward pressure has faded."

1-3 WEEKS VIEW: "Our most recent narrative was from last Friday (11 Jul, spot at 0.6565), in which we noted that 'while the current price movements are likely part of a range trading phase, the firm underlying tone suggests AUD could trade in a higher range of 0.6515/0.6615 from here.' While our expected range remains intact, the underlying tone has softened. That said, AUD is likely still trading in a 0.6515/0.6615 range."