The Australian Dollar (AUD) is projected to trade within a narrow range of 0.6470 to 0.6520, as analysts at UOB Group observe a slowdown in the currency‘s downward momentum. A break above the 0.6520 level would signal a potential shift, indicating that the AUD may no longer be weakening.
In the short term, analysts note that the AUD’s recent movement was unexpected, with the currency advancing to a high of 0.6510, despite a previous forecast of sideways trading within the 0.6445 to 0.6485 range. However, the lack of strong momentum suggests that the AUD is unlikely to rise significantly beyond 0.6520 in the immediate future.
Looking ahead, UOB’s Quek Ser Leang and Lee Sue Ann revised their outlook to negative earlier in the week, suggesting that further weakness in the AUD was still likely, with a focus on the 0.6400 support level. Yet, as downward momentum slows, a break above 0.6520 could shift the outlook, indicating that the AUD may consolidate rather than continue its decline.
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