AUD/USD is expected to continue to strengthen – UOB Group
|Australian Dollar (AUD) is expected to continue to strengthen vs US Dollar (USD), but it does seem to have enough momentum to reach 0.6410 for now. In the longer run, rapid increase in momentum suggests AUD could recover, potentially reaching 0.6410, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Enough momentum to reach 0.6410 for now
24-HOUR VIEW: "While we expected AUD to 'strengthen further' yesterday, we were of the view that 'any advance is likely part of a higher range of 0.6230/0.6285.' However, AUD broke decisively above 0.6285 and soared to 0.6343. Today, we continue to expect AUD strength. However, at this stage, it does not seem to have enough momentum to reach 0.6410. There is another resistance at 0.6370. On the downside, any pullback is likely to hold above 0.6270 (minor support is at 0.6300)."
1-3 WEEKS VIEW: "After holding a negative view since late last week, we cautioned yesterday (05 Mar, spot at 0.6260) that 'momentum is slowing, and the likelihood of further declines is diminishing.' We stated, 'a breach of 0.6285 would indicate stabilisation.' We did not expect AUD to soar to 0.6343. The strong advance has resulted in a rapid increase in momentum. From here, we expect AUD to recover, potentially reaching 0.6410. To sustain the buildup in momentum, AUD must remain above 0.6235."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.