Australian Dollar (AUD) is unlikely to rise much further; it is expected to trade in a 0.6325/0.6375 range. In the longer run, momentum remains strong; AUD could continue to advance, potentially to 0.6410, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

Long term momentum remains strong

24-HOUR VIEW: "Last Friday, we indicated that 'as long as AUD remains above 0.6270, there is a chance for it to rise above 0.6330.' However, we were of the view that 'the major resistance at 0.6355 is likely out of reach for now.' While AUD did not threaten the 0.6270 support level (low has been 0.6311), it rose more than expected, reaching a high of 0.6368 before settling at 0.6353 (+0.56%). The rally appears to be overdone, and AUD is unlikely to rise much further. Today, we expect AUD to trade in a 0.6325/0.6375 range."

1-3 WEEKS VIEW:  "Earlier this month on 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 closed above 0.6310, we highlighted last Friday (14 Feb, spot at 0.6315) that 'as long as 0.6250 (‘strong support’ level) is not breached, AUD is likely to rise to 0.6355.' AUD subsequently rose above 0.6355 and reached a high of 0.6368. Momentum remains strong, and we continue to expect AUD to advance, potentially to 0.6410. On the downside, the ‘strong support’ level has moved higher to 0.6290 from 0.6250."

 

Source: Fxstreet