AUD/USD: Expected to trade in a range between 0.6300 and 0.6350 – UOB Group
Australian Dollar (AUD) is expected to trade in a range between 0.6300 and 0.6350 vs US Dollar (USD). 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.
Rapid increase in momentum suggests AUD can recover
24-HOUR VIEW: "Yesterday, we expected AUD to 'continue to strengthen.' However, we held the view that it 'it does not seem to have enough momentum to reach 0.6410'. We pointed out, 'there is another resistance at 0.6370.' During the NY session, AUD rose briefly to 0.6364 before easing to close largely flat at 0.6332 (-0.05%). The brief advance did not result in any increase in momentum, and we expect range trading today, likely between 0.6300 and 0.6350."
1-3 WEEKS VIEW: "We revised our view from negative to positive yesterday (06 Mar, spot at 0.6330). We highlighted that the strong advance from two days ago 'has resulted in a rapid increase in momentum,' and AUD 'could recover, potentially reaching 0.6410.' Our view remains unchanged. To sustain the momentum, AUD must hold above 0.6265 (‘strong support’ level was at 0.6235 yesterday)."
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FXStreet Insights Team
FXStreet
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