AUD/USD: Significant support level at 0.6585 to hold – UOB Group

The Australian Dollar (AUD) could decline further; the significant support level at 0.6585 might not be easy to break. In the longer run, AUD is expected to continue to decline; the level to watch is a significant support at 0.6585, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

Level to watch is a significant support at 0.6585

24-HOUR VIEW: “We expected AUD to trade in a sideways range of 0.6620/0.6660 last Friday. Our view was incorrect, as AUD fell to a low of 0.6601, closing on a soft note at 0.6605 (-0.54%). The increase in momentum suggests AUD could decline further, but it the significant support level at 0.6585 might not be easy to break. To keep the momentum going, AUD must stay below 0.6645 with minor resistance at 0.6625.”

1-3 WEEKS VIEW: “Our update from last Thursday (24 Oct, spot at 0.6635) still stands. As highlighted, AUD ‘is expected to continue to decline, and the level to watch is a significant support at 0.6585.’ Overall, only a breach of 0.6670 (‘strong resistance’ level previously at 0.6685) would mean that the weakness that started early this month has stabilised.”