Further AUD strength is not ruled out, but any advance is likely part of a higher range of 0.6230/0.6330. In the longer run, AUD is likely to trade with an upward bias, potentially testing the key resistance at 0.6390, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
Further AUD strength is not ruled out
24-HOUR VIEW: “While we expected AUD to ‘strengthen further’ last Friday, we indicated that ‘the major resistance at 0.6290 seems to be out of reach.’ However, AUD ultimately broke above 0.6290, reaching a high of 0.6301. Despite the advance, upward momentum has not increased
significantly. That said, further AUD strength is not ruled out, but any advance is likely part of a higher range of 0.6230/0.6330. In other words, a sustained rise above 0.6330 is unlikely.”
1-3 WEEKS VIEW: “Our most recent narrative was from last Thursday (10 Apr, spot at 0.6145), where we expected AUD to ‘trade in a 0.6000/0.6290 range for the time being.’ AUD rose above 0.6290 last Friday (high of 0.6301) before closing at 0.6294, up by 1.09%. While we would prefer a more decisive close above 0.6290, the price action suggests that AUD is likely to trade with an upward bias, potentially testing the key resistance at 0.6390. To sustain the momentum, AUD must remain above the ‘strong support’ level, currently at 0.6140.”