The Australian Dollar (AUD) is expected to edge lower to 0.6850; the major support at 0.6820 is unlikely to come under threat. AUD has likely entered a range trading phase, expected to be between 0.6820 and 0.6935, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann note.

AUD has likely entered a range trading phase

24-HOUR VIEW: “After AUD rose to 0.6944 two days ago, we indicated yesterday that ‘there has been no further increase in momentum, and instead of continuing to rise today, AUD is expected to trade in a sideways range of 0.6885/0.6935.’ Instead of trading sideways, AUD fell to a low of 0.6858, closing at 0.6883 (-0.43%). Despite the decline, downward momentum only increases slightly. Today, we expect AUD to edge lower to 0.6850. The major support at 0.6820 is not expected to come under threat. Resistance levels are at 0.6900 and 0.6920.”