AUD/USD: Any advance is unlikely to reach the major resistance at 0.6555 – UOB Group

Australian Dollar (AUD) could rise further against US Dollar (USD); any advance is unlikely to reach the major resistance at 0.6555. In the longer run, a narrower range of 0.6470/0.6555 is likely enough to contain the price movements for now, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

AUD/USD is likely to rise further

24-HOUR VIEW: "Yesterday, we expected AUD to 'trade between 0.6500 and 0.6530.' We underestimated the volatility as AUD dropped to 0.6483 and then rose rapidly to a high of 0.6541 in the NY session. While there has been no significant increase in upward momentum, AUD could rise further. However, any advance is unlikely to reach the major resistance at 0.6555. Support is at 0.6510, followed by 0.6495."

1-3 WEEKS VIEW: "We have expected range-trading since last week (see annotations in the chart below). In our latest narrative from Monday (11 Aug, spot at 0.6520), we indicated that 'while we continue to expect range trading, a narrower range of 0.6470/0.6555 is likely enough to contain the price movements for now.' Yesterday, AUD dipped to 0.6483 before recovering quickly. The price action still appears to be part of a range trading phase. In other words, we continue to hold the same view for now."