The Australian Dollar (AUD) is under mild downward pressure; it could drift lower, but a sustained break below 0.6500 appears unlikely. In the longer run, there has been a tentative buildup in momentum; to decline in a sustained manner, AUD must break and remain below 0.6500, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

To decline further, AUD must break and remain below 0.6500

24-HOUR VIEW: “We expected AUD to trade in a 0.6555/0.6595 range yesterday. Our view was incorrect, as instead of trading in a range, AUD dropped to 0.6515, closing on a soft note at 0.6532 (-0.64%). Despite the decline, downward momentum has not increased much. However, provided that 0.6560 (minor resistance is at 0.6545) is not breached, AUD could drift lower to 0.6500. Due to the mild momentum, a sustained break below 0.6500 appears unlikely.”