AUD is likely to continue to rise towards 0.6955 – UOB Group

The Australian Dollar (AUD) is likely to continue to rise; 0.6955 is probably out of reach for now. Outlook for AUD remains positive, and it could advance further to 0.6955, UOB Group FX strategists Quek Ser Leang and Peter Chia note.

The bullish target is at 0.6955

24-HOUR VIEW: “Our view for AUD to trade sideways yesterday was incorrect. Instead of trading sideways, AUD soared to 0.6894, and it continues to rise in early Asian trade today. Having breached the 0.6900, AUD is likely to continue to rise, even though 0.6955 is probably out of reach for now (there is another resistance level at 0.6930). In order to keep the momentum going, AUD must remain above 0.6850 (minor support is at 0.6870).”

1-3 WEEKS VIEW: “We have held a positive AUD view since early last week. In our most recent narrative from last Friday (20 Sep, spot at 0.6800), we highlighted that “while there is still room for AUD to continue to rise, it may not have enough momentum to challenge to significant resistance at 0.6870.” Yesterday, AUD took off and broke above 0.6870. Today, it rose above another significant resistance level at 0.6900. The breach of the resistance levels is accompanied by strong upward momentum, and we remain positive in AUD, anticipating a further advance to 0.6955. The positive outlook is intact as long as 0.6820 (‘strong support’ level was at 0.6770 yesterday) is not breached.”