AUD/USD: Very likely to retest the 0.6680 level – UOB Group
Australian Dollar (AUD) could retest the 0.6680 level before a recovery can be expected; any further decline is unlikely to reach 0.6655. In the longer run, the current price movements are likely part of a range-trading phase between 0.6655 and 0.6745, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Current price movements are likely part of a range-trading phase
24-HOUR VIEW: "We expected AUD to 'consolidate between 0.6705 and 0.6745' yesterday. However, instead of consolidating, AUD dropped to a low of 0.6682. Despite the decline, downward momentum only increased slightly. Today, AUD could retest the 0.6680 level before a recovery can be expected. While a break below 0.6680 is not ruled out, based on the current momentum, any further decline is unlikely to reach 0.6655. Resistance levels are at 0.6715 and 0.6730."
1-3 WEEKS VIEW: "Two days ago (07 Jan, spot at 0.6730), we indicated that AUD 'could edge higher'. However, we noted that 'it remains to be seen if it can reach 0.6770'. After AUD rose to 0.6766 and pulled back, we noted yesterday that 'while upward momentum has eased somewhat with the pullback, we will maintain our view as long as AUD holds above 0.6690 (‘strong support’ level)'. AUD subsequently broke below 0.6690 (low of 0.6682). The buildup in momentum has faded, and the current price movements are likely part of a range-trading phase between 0.6655 and 0.6745."
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Betting Big on AI Burns Through Cash Cows—This Time, the Market No Longer "Rewards Burning Money"!
The AI spending race faces profitability scrutiny: Google’s search advertising growth rate has dropped to its lowest in five quarters, and Amazon’s single-quarter free cash flow has plunged to -$33.5 billion. Yet both companies continue with capital expenditure plans exceeding $400 billion. As their core cash-generating businesses lose momentum and debt and financing needs surge, the market is shifting from rewarding AI investment to questioning returns, forcing a re-evaluation of the valuation logic for tech giants.
Wall Street Sees AWS’s Ambition, But Can’t See the Future of Amazon’s Advertising Business
Amazon's Q3 financial report presents a mixed picture: AWS order backlog soared by 189% to $578 billion, and the CEO made the rare promise that growth will exceed 40% in 2027-2028, aiming for $1 trillion in revenue within five to ten years. However, advertising business growth plunged from 26% to 12%, and capital expenditure reached $77.3 billion, far exceeding expectations, causing the stock price to fall 7% after hours. While major Wall Street banks collectively maintain their “buy” ratings, they admit that the structural risks posed by AI agents to the advertising ecosystem remain unresolved.
Both Investment and Exports Lag Behind! France's Q3 GDP Unexpectedly Shrinks, Making Fiscal Consolidation Even Harder
Amid soaring borrowing costs, violent protests, and uncertainties in politics and budgeting, the French economy unexpectedly contracted in the third quarter.
A growth trump card beyond AI trading! Eli Lilly (LLY.US) sees volume boost in weight-loss drugs and launches new products; JPMorgan raises target price to $1650
Leading U.S. healthcare company Eli Lilly surged 6.63% to close at $1,373.70, defying the broader decline as the Nasdaq 100 Index fell 1.38% and the Philadelphia Semiconductor Index dropped 1.42%.
Crypto prices
More
