“The 1.31 level is an obvious target, but 1.32 is probably just out of reach, as in the previous upswing, in August 2012. Moreover, the AUD/SGD has ignored daily moving averages lately.” Callow adds.
However, the 100 week moving average (1.2972) is drawing some attention. The next obvious chart points are round numbers 1.30 and 1.31 then the Aug 2012 high at 1.3193.
“There is no reason to expect a return to anywhere close to the long term average of 1.17 given ongoing demand for Australian government bonds and FDI plus commodity prices which are still high in historical terms.” he predicts.