AUD/USD: Likely to rise to 0.6355 – UOB Group

As long as Australian Dollar (AUD) remains above 0.6270 vs US Dollar (USD), there is a chance for it to rise above 0.6330. The major resistance at 0.6355 is likely out of reach for now. In the longer run, as long as 0.6250 is not breached, AUD is likely to rise to 0.6355, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

Major resistance at 0.6355 is likely out of reach for now

24-HOUR VIEW: "After AUD traded in a choppy manner two days ago, we indicated yesterday that “the outlook is mixed” and we expected it to 'trade between 0.6250 and 0.6310.' AUD then dipped to 0.6255 before staging a surprisingly strong rise that broke above 0.6310 (high has been 0.6323). AUD closed higher by 0.62% at 0.6317. Despite the advance, upward momentum has not increased significantly. However, as long as AUD remains above 0.6270, there is a chance for it to rise above 0.6330. The major resistance at 0.6355 is likely out of reach for now."

1-3 WEEKS VIEW: "Last Thursday (06 Feb, spot at 0.6280), we indicated that 'if AUD closes above 0.6310, it could trigger an advance to 0.6355.' After AUD traded in a range for a few days, we indicated on Tuesday (11 Feb, spot at 0.6270) that the recent 'buildup in momentum is fading, and if AUD breaks below 0.6230 (‘strong support’ level), it would mean that AUD is likely to trade in a range.' AUD then fell to a low of 0.6235, and yesterday, we highlighted that 'as long as 0.6230 is not breached, there is still a slim chance for AUD to break clearly above 0.6310.' In late NY trade, AUD soared and broke above 0.6310 (high has been 0.6323) and closed at 0.6317 (+0.62%). From here, as long as 0.6250 (‘strong support’ level previously at 0.6230) is not breached, we expect AUD to rise to 0.6355."