The Australian Dollar (AUD) has shown signs of rebounding after a period of weakness, according to UOB Group FX analysts Quek Ser Leang and Lee Sue Ann. However, despite this positive trend, the analysts believe that any advance is unlikely to surpass the major resistance level at 0.6600. Currently, the AUD is expected to trade within a range of 0.6400 to 0.6600 in the near future.
Analysis and Outlook
24-HOUR VIEW: Despite expectations for a rebound, the AUD failed to make significant gains and traded within a range of 0.6472 to 0.6541 before closing at 0.6519. The underlying tone remains firm, indicating potential for further growth. However, the analysts caution that the AUD is unlikely to breach the resistance level at 0.6600. Support levels are identified at 0.6500 and 0.6480.
1-3 WEEKS VIEW: Following a period of weakness, the AUD has stabilized, prompting the analysts to revise their outlook. They now anticipate the AUD to trade within a neutral range of 0.6400 to 0.6600 in the coming weeks. This view is consistent with the current market conditions.
Financial Impact and Implications
For investors and traders, the potential rebound of the Australian Dollar offers opportunities for profit. However, the resistance level at 0.6600 serves as a barrier to significant gains. It is important to monitor support levels at 0.6500 and 0.6480 to gauge the AUD’s strength.