The Australian Dollar (AUD) could continue to rise, but any advance is likely part of a higher range of 0.6745/0.6765. In the longer run, AUD must break and remain above 0.6765 before an advance to 0.6825 can be expected, UOB Group FX strategists Quek Ser Leang and Lee Sue Ann note.
24-HOUR VIEW: “While AUD gained 0.70% (0.6752) yesterday, upward momentum has not increased much. Today, it could continue to rise, but any advance is likely part of a higher range of 0.6725/0.6765. In other words, AUD is unlikely to break clearly below 0.6725 or above 0.6745.” 1-3 WEEKS VIEW: “AUD dropped to 0.6622 last week and then rebounded. There has been a tentative buildup in momentum. From here, AUD must break and remain above 0.6765 before an advance to 0.6825 can be expected. The likelihood of AUD breaking clearly above 0.6765 will increase in the next few days as long as 0.6700 is not breached.”