AUD/USD: Expected to trade sideways between 0.6540 and 0.6595 – UOB Group

Australian Dollar (AUD) is expected to trade sideways between 0.6540 and 0.6595 against US Dollar (USD). In the longer run, should AUD break clearly above 0.6595, it could trigger a further rise toward 0.6620, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Above 0.6595, AUD can rise toward 0.6620

24-HOUR VIEW: "We expected AUD to 'trade in a range of 0.6550/0.6595' yesterday. The subsequent price action did not turn out as we expected, as AUD dropped briefly to 0.6537 and then rebounded to close slightly lower at 0.6572 (-0.20%). There has been no increase in either downward or upward momentum. Today, we expect AUD to trade sideways between 0.6540 and 0.6595."

1-3 WEEKS VIEW: "On Tuesday, 01 Jul, when AUD was at 0.6575, we highlighted that 'should AUD break clearly above 0.6595, it could trigger a further rise toward 0.6620.' Since then, AUD has not been able to make much headway to the upside. However, we will maintain our view for now, as long as 0.6530 (no change in ‘strong support’ level) is not breached."