24-hour view: Yesterday, we expected AUD to trade in a range between 0.6595 and 0.6650. However, after rising to a high of 0.6650, AUD dropped sharply to 0.6571 before rebounding. The price action did not result in any increase in downward momentum. We continue to expect AUD to trade in a range, albeit a lower one of 0.6565/0.6640. 

Next 1-3 weeks: We have held a positive view in AUD since the middle of last month (see annotations in the chart below). Yesterday (30 Nov, spot at 0.6625), we indicated that AUD must break and stay above 0.6680 soon, or the chance for it to rise further will diminish rapidly. AUD then dropped and broke below our ‘strong support’ level at 0.6575 (low has been 0.6571). The breach of our ‘strong support’ indicates that AUD strength has ended. From here, AUD is likely to trade in a range, probably between 0.6530 and 0.6665.