AUD/USD may revisit the year-to-date high of 0.6625 – UOB Group

The current price movements are likely part of a 0.6560/0.6605 consolidation range. In the longer run, rapid improvement in upward momentum indicates that AUD may revisit the year-to-date high of 0.6625, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Rapid improvement in upward momentum

24-HOUR VIEW: "AUD rose sharply to a high of 0.6598 on Monday. Yesterday, Tuesday, when AUD was at 0.6590, we indicated that 'while strong momentum suggests AUD could continue to rise, with negative divergence forming, any advance is unlikely to reach the significant resistance level at 0.6625.' AUD subsequently rose to a high of 0.6619 and then eased to close slightly lower at 0.6586 (-0.09%). Momentum indicators are turning neutral, and the current price movements are likely part of a consolidation range, expected to be between 0.6560 and 0.6605."

1-3 WEEKS VIEW: "Two days ago (08 Sep, spot at 0.6550), we indicated that 'there is a chance for AUD to rise toward 0.6595, but it is unlikely to break clearly above this level.' After AUD rose to a high of 0.6598, we highlighted yesterday (09 Sep, spot at 0.6590) that 'rapid improvement in upward momentum indicates that AUD may revisit the year-to-date high of 0.6625.' AUD subsequently rose to 0.6619 before easing. We continue to hold the same view for now, as long as the ‘strong support’ at 0.6540 (no change in level from yesterday) is not breached."