24-hour view: Our view for AUD to consolidate in a range of 0.6465/0.6515 yesterday was incorrect. Instead of consolidating, AUD dropped sharply to 0.6405 before rebounding. The rebound in oversold conditions suggests AUD is unlikely to weaken further. Today, AUD is likely to trade sideways in a range of 0.6405/0.6470. 

Next 1-3 weeks: After AUD soared last Friday, we highlighted on Monday (06 Nov, spot at 0.6510) that it “is likely to break above 0.6525 and head towards another strong resistance level at 0.6555.” Yesterday, AUD plummeted and broke below ‘strong support’ level of 0.6425 (low has been 0.6405). The breach of the ‘strong support’ level indicates that upward momentum has faded. For the time being, AUD is likely to trade in a range, probably between 0.6350 and 0.6525.