Scope for Australian Dollar (AUD) to rise further vs US Dollar (USD), but it does not seem to have enough momentum to test 0.6385 (there is another resistance at 0.6365). In the longer run, slightly firm underlying tone suggests AUD is likely to trade in a higher range of 0.6245/0.6385, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
AUD can test the resistance at 0.6365 in short term
24-HOUR VIEW: “We did not anticipate AUD rising sharply to 0.6331 last Friday (we were expecting range trading). Despite the relatively strong advance, upward momentum has not increased much. However, there is scope for AUD to rise further, but it does not seem to have enough momentum to test the major resistance at 0.6385. Note that there is another resistance level at 0.6365. Support is at 0.6315; a breach of 0.6300 would indicate that the current upward pressure has eased.”
1-3 WEEKS VIEW: “We have expected AUD to trade in a range since early last week. In our most recent narrative from last Thursday (12 Mar, spot at 0.6325), we highlighted that ‘the slightly firm underlying tone suggests a higher range of 0.6245/0.6385.’ There is no change in our view.”