According to Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group, AUDUSD now looks side lined between 0.6590 and 0.6800 in the next few weeks.

Key Quotes

24-hour view: “We expected AUD to ‘trade sideways between 0.6695 and 0.6785’ yesterday. Our view was incorrect as AUD dropped to 0.6635 before rebounding quickly to close at 0.6690 (-0.76%). Despite the decline, downward momentum has not improved much. That said, there is room for AUD to retest the 0.6635 level before the risk of a more sustained rebound increases. The next support at 0.6600 is not expected to come into view. Resistance is at 0.6715, followed by 0.6750.”

Next 1-3 weeks: “After AUD soared to a high of 0.6798, we highlighted on Wednesday (16 Nov, spot at 0.6750) that while upward momentum has not improved much, there is room for AUD to advance further to 0.6820. Yesterday, AUD dropped below our ‘strong support’ level at 0.6670. The break of the ‘strong support’ indicates that AUD is not advancing further. AUD appears to have moved into a consolidation phase and is likely to trade between 0.6590 and 0.6800 for the time being.”