AUD/USD: Clear break above 0.6555 s unlikely – UOB Group

Australian Dollar (AUD) is likely to test 0.6555; a clear break above this level is unlikely. In the longer run, AUD is slightly positive, and it is likely to edge higher to 0.6555, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

AUD is likely to edge higher

24-HOUR VIEW: "The following are excerpts from our update last Friday: 'Our assessments turned out to be correct, as AUD rose but did not reach 0.6540 (high of 0.6538). Upward momentum has increased, but not significantly. Today, AUD could rise above 0.6540, but this time around, it is unlikely to reach the next resistance at 0.6555.' We were not wrong, as AUD rose and reached a high of 0.6548. While there has been no significant increase in upward momentum, the underlying tone still appears firm. Today, there is a chance for AUD to test 0.6555. Based on the current momentum, it is unlikely to break clearly above this level. Support levels are at 0.6530 and 0.6520."

1-3 WEEKS VIEW: "We revised our AUD view to 'slightly positive' last Friday (29 Aug, spot at 0.6530), indicating that it 'is likely to edge higher to 0.6555.' AUD subsequently rose to a high of 0.6548. We will continue to hold the same view as long as 0.6495 (‘strong level’ was at 0.6485 last Friday) is not breached."