Australian Dollar (AUD) is expected to trade in a range against US Dollar (USD), likely between 0.6490 and 0.6535. In the longer run, bias remains on the upside, but it remains to be seen if AUD can break clearly above 0.6555, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
Likely to trade between 0.6490 and 0.6535
24-HOUR VIEW: “We stated in the early Asian session yesterday that ‘upward momentum has increased further, indicating further upside pressure.’ However, we highlighted that ‘the major resistance at 0.6555 is likely out of reach.’ We also highlighted that ‘there is another resistance level at 0.6540.’ In the early NY session, AUD rose briefly to 0.6546 before retreating to close at 0.6503. The price action did not result in any increase in upward momentum. Today, we expect AUD to trade in a range, likely between 0.6490 and 0.6535.”
1-3 WEEKS VIEW: “We have expected a positive bias in AUD since early last week. In our latest narrative from last Friday (06 Jun, spot at 0.6510), we indicated that “the bias remains on the upside, but it remains to be seen if AUD can break clearly above 0.6555.” Yesterday, AUD rose briefly to 0.6546. As there has been no further increase in upward momentum, we continue to hold the same view. On the downside, if AUD breaks below 0.6480 (no change in ‘strong support’ level), it would mean that AUD is likely to trade in a range for the time being.”
Read the full article here
