The Australian Dollar (AUD) is expected to trade within a narrow range between 0.6220 and 0.6290, according to FX analysts Quek Ser Leang and Lee Sue Ann of UOB Group. In the longer term, the current price movement is seen as the early stages of a potential recovery phase, with a target of 0.6350.
Short-Term Outlook: Sideways Trading
For the short term, analysts indicate that the upward momentum has slowed. AUD fluctuated between 0.6209 and 0.6289 during recent sessions, failing to break above the 0.6305 level as expected. As a result, the pair is anticipated to trade sideways today, with a range between 0.6220 and 0.6290.
Medium-Term Outlook: Recovery Potential
Looking further ahead, UOB Group maintains its view that the recent surge in AUD could signal the beginning of a recovery phase. The analysts emphasized that for the recovery to remain intact, the AUD must avoid breaking below the 0.6190 mark. If the currency can maintain its current levels, the potential for reaching 0.6350 remains viable.
In conclusion, while short-term movements suggest a sideways range, the broader outlook for AUD remains positive, contingent on holding above key support levels.
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