The Australian Dollar (AUD) is likely to remain in a sideways trading range between 0.6570 and 0.6605 in the short term, according to analysts Quek Ser Leang and Peter Chia from UOB Group. However, downside pressure is gradually building, and the chances of a break below key support at 0.6555 are increasing.
Short-Term View: Range-Bound for Now
24-HOUR VIEW
UOB analysts note that while downward momentum has eased slightly, recent price action points to a consolidation phase.
“After AUD dipped to 0.6557 yesterday and rebounded to close little changed at 0.6586 (+0.07%), we believe the pair is now likely to trade sideways, between 0.6570 and 0.6605 in the near term.”
Medium-Term View: Risk Skewed to the Downside
1–3 WEEKS VIEW
Since the start of October, UOB had maintained a neutral stance on AUD/USD. However, as of October 8, the outlook began to shift:
“Downward momentum is starting to build, and the odds of AUD breaking below 0.6555 are rising. This bearish bias will stay intact as long as the pair remains below the strong resistance level at 0.6630.”
Although the pair bounced from 0.6557 recently, the lack of a strong recovery suggests that selling pressure could return. The medium-term outlook remains cautiously bearish unless 0.6630 is breached to the upside.
Key Levels to Watch
- Support: 0.6555 (critical level); break below could trigger deeper losses
- Resistance: 0.6605 (near-term cap), 0.6630 (strong resistance)