AUD/USD: Expected to trade in a range of 0.6550/0.6595 – UOB Group

Australian Dollar (AUD) is expected to trade in a range of 0.6550/0.6595 against US Dollar (USD). In the longer run, should AUD break clearly above 0.6595, it could trigger a further rise toward 0.6620, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Above 0.6595, AUD may rise toward 0.6620

24-HOUR VIEW: "We expected AUD to test 0.6595 two days ago. After AUD rose to a high of 0.6590, we indicated yesterday that it 'may still test 0.6595, but given the slowing momentum, a sustained rise above this level is unlikely.' Our expectations did not materialise, as AUD traded in a range of 0.6544/0.6588, closing largely unchanged at 0.6585 (+0.05%). The price action provides no fresh clues. Today, we expect AUD to trade in a range, albeit a higher one of 0.6550/0.6595."

1-3 WEEKS VIEW: "In our most recent narrative from two days ago (01 Jul, spot at 0.6575), we highlighted that 'should AUD break clearly above 0.6595, it could trigger a further rise toward 0.6620.' Since then, AUD has traded just below the 0.6595 level, and we continue to hold the same view. On the downside, a breach of 0.6530 (no change in ‘strong support’ level) will invalidate the scenario of AUD breaking clearly above 0.6595."