The Australian Dollar (AUD) is likely to trade in a range, probably between 0.6515 and 0.6565. If AUD breaches 0.6565, it would suggest that the weakness from two weeks ago has stabilised, UOB Group FX strategists Quek Ser Leang and Lee Sue Ann note.

AUD to break below 0.6515

24-HOUR VIEW: “After AUD plunged sharply in early Asian trade yesterday, we indicated that ‘the sharp decline appears to be a tad overdone.’ However, we held the view that ‘as long as 0.6540 is not breached, AUD could break below the major support at 0.6480.’ AUD subsequently dropped to but did not break 0.6480 (low has been 0.6480) and then rebounded to a high of 0.6555. The buildup in downward pressure fizzled out quickly. Today, AUD is likely to trade in a range, probably between 0.6515 and 0.6565.”