AUD/USD to edge above 0.6700 – UOB Group

There is a chance for Australian Dollar (AUD) to edge above 0.6700; a sustained rise above this level appears unlikely. In the longer run, there is a chance for AUD to break above 0.6700; too early to determine whether 0.6735 is within reach, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Chance for AUD to break above 0.6700

24-HOUR VIEW: "While we expected AUD to 'continue to edge higher' yesterday, we were of the view that it 'is unlikely to reach the major resistance at 0.6700.' We pointed out that 'there is another resistance level at 0.6685.' We also pointed out that 'support levels are at 0.6660 and 0.6645.' Our assessments were not wrong, as AUD dipped to 0.6660 and then rose to a high of 0.6688. Although upward momentum has not increased significantly, there is a chance for AUD to edge above 0.6700. However, a sustained rise above this level appears unlikely. The next major resistance at 0.6735 is also unlikely to come into view. Today’s support levels are at 0.6675 and 0.6660."

1-3 WEEKS VIEW: "We have maintained a positive AUD view since early last week. In our latest narrative from last Friday (12 Sep, spot at 0.6665), we highlighted that the recent “price action continues to suggest a higher AUD, and the next level to watch is 0.6700.” Yesterday, AUD rose to a high of 0.6688. Although there has been no clear increase in upward momentum, there is a chance for AUD to break above 0.6700. Currently, it is too early to determine whether AUD has sufficient momentum to reach 0.6735. We will maintain our view as long as 0.6640 (‘strong support’ level was at 0.6625 yesterday) is not breached."