AUD/USD: Expected to trade in a range between 0.6445 and 0.6490 – UOB Group
Australian Dollar (AUD) is expected to trade in a range between 0.6445 and 0.6490 against US Dollar (ISD). In the longer run, price action suggests AUD could continue to rise and test the significant resistance level at 0.6540, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Price action suggests AUD could continue to rise
24-HOUR VIEW: "On Monday, AUD soared to a high of 0.6500. Yesterday, Tuesday, we pointed out that 'the sharp rise appears excessive, but there is room for AUD to test 0.6510 before leveling off.' However, after retesting 0.6500, AUD retreated to 0.6447 in the early NY session before settling at 0.6462 (-0.52%). There has been no increase in either downward or upward momentum. Today, we expect AUD to trade in a range, most likely between 0.6445 and 0.6490."
1-3 WEEKS VIEW: "When AUD was at 0.6490 yesterday (03 Jun, spot at 0.6490), we highlighted that the 'price action suggests AUD could continue to rise and test the significant resistance level at 0.6540.' We also highlighted that 'should AUD break below 0.6430, it would mean that it is not ready to head higher just yet.' Our view remains unchanged."