AUD/USD: Likely to trade in a range of 0.6455/0.6505 – UOB Group
|Australian Dollar (AUD) is likely to trade in a range of 0.6455/0.6505. In the longer run, slight increase in upward momentum is likely to lead to a higher range of 0.6440/0.6540 rather than a sustained advance, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Slight increase in upward momentum
24-HOUR VIEW: "Last Friday, AUD soared to a high of 0.6501. Yesterday, Monday, when AUD was at 0.6485, we indicated that 'the sharp rise appears to be excessive, and instead of continuing to rise today, AUD is more likely to trade in a range of 0.6460/0.6510.' AUD then traded between 0.6472 and 0.6523, a higher range than expected. AUD closed modestly lower at 0.6482, down by 0.14%. Further range trading appears likely today, but the softer underlying tone suggests a lower range of 0.6455/0.6505."
1-3 WEEKS VIEW: "We continue to hold the same view as yesterday (25 Aug, spot at 0.6485). As highlighted, after last Friday’s price movements, 'there has been an increase in upward momentum, but not significantly, and this is likely to lead to a higher range of 0.6440/0.6540 rather than a sustained advance'."
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