AUD Consolidation Continues Below Key Resistance
Quek Ser Leang and Lee Sue Ann from United Overseas Bank (UOB) believe that the Australian Dollar (AUD) is consolidating in a tight range against the US Dollar (USD). The pair has been trading around 0.7120, with some brief spikes to 0.7140. However, this action is seen as part of a larger 0.7105-0.7135 range.
The analysts from UOB still hold a negative view on the AUD for the next 1-3 weeks, but acknowledge that the probability of a drop to 0.7050 has diminished considerably. This is due to the fact that the resistance level at 0.7140 has not been clearly breached.
In their previous report from Thursday (17 Sep), Quek Ser Leang and Lee Sue Ann stated that they expected the AUD to drop to 0.7050 as long as it held below 0.7140. While yesterday's brief rise to 0.7140 did not result in a clear breach of this level, the likelihood of reaching 0.7050 has diminished.