The Australian Dollar (AUD) has shown signs of stabilization after a month of decline, with AUD/USD trading within a 0.6535 to 0.6655 range. Analysts at UOB Group, Quek Ser Leang and Lee Sue Ann, suggest this rangebound trend will continue as the currency pares its losses and finds key support and resistance levels.
AUD/USD 24-Hour View: Sideways Momentum
In the short term, UOB analysts expected an upward bias for the AUD on Monday but noted potential resistance at 0.6620. The AUD/USD pair did indeed push up to 0.6619, only to pull back shortly after, moving sideways. Now, with fading upward pressure, AUD/USD is projected to maintain a narrower range, trading between 0.6565 and 0.6605. This consolidation hints that any upward momentum in the AUD is meeting resistance, but the pair appears to be stabilizing within a tighter band.
1-3 Weeks View: Stabilized After Month-Long Decline
For the medium term, UOB analysts have revised their previously bearish stance on the AUD after the recent stabilization. Since early October, the Australian Dollar faced persistent downward pressure. However, with the AUD now hovering between 0.6535 and 0.6655, the analysts indicate that the currency’s previous weakness has come to a halt. According to UOB, the AUD/USD pair is likely to stay within this 120-pip range until clearer catalysts emerge.
Also read : New Zealand Dollar (NZD) Trading Range Stabilizes- Expect Choppy Movement Between 0.5940 And 0.6040
Technical Levels to Watch
In technical terms, resistance sits at 0.6620 and 0.6655, while support levels are expected at 0.6535 and 0.6565. These levels reflect AUD’s current consolidation phase, with any breakout requiring a significant shift in market sentiment or data releases.
