Set to test the 0.6820 resistance – UOB Group

The Australian Dollar (AUD) is expected to trade in a range, probably between 0.6775 and 0.6820. In the longer run, there has been no further increase in momentum; if AUD breaks below 0.6730, it would mean that 0.6870 is not coming into view, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann notes.

Moves up towards 0.6820

24-HOUR VIEW: “Our view of AUD consolidating in a range of 0.6760/0.6810 yesterday was incorrect. Instead of consolidating, AUD rose to 0.6824, pulling back to close at 0.6798 (+0.20%). The advance did not result in a significant increase in momentum. Today, we expect AUD to trade in a range, probably between 0.6775 and 0.6820.”

1-3 WEEKS VIEW: “There is not much to add to our update from yesterday (29 Aug, spot at 0.6780). As highlighted, the price action over the past couple of days did not result in further increase in momentum. From here, if AUD breaks below 0.6730 (no change in ‘strong support’ level), it would mean that the major resistance at 0.6870 is not coming into view.”