Sustained break above 0.6310 is unlikely – UOB Group

AUD is facing mild upward pressure; it could test 0.6310, but a sustained break above this level is unlikely. If AUD closes above 0.6310, it could trigger an advance to 0.6355, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

Break above 0.6310 can trigger an advance to 0.6355

24-HOUR VIEW: “When AUD was at 0.6280 during early the Asian session yesterday, we noted that ‘while conditions remain overbought, AUD could edge higher and test 0.6310.’ We pointed out that ‘support levels are at 0.6265 and 0.6245.’ Our expectations did not materialise, as AUD traded in a 0.6255/0.6288 range, closing largely unchanged at 0.6284 (-0.04%). Despite the relatively quiet price action, the underlying tone seems firm. Today, we continue to expect AUD to edge higher and test 0.6310. Given the mild momentum, a sustained break above this level is unlikely. Support is at 0.6265; a breach of 0.6245 would indicate that the current mild upward pressure has eased.”

1-3 WEEKS VIEW: “We highlighted yesterday (06 Feb, spot at 0.6280) that ‘upward momentum is beginning to build, and if AUD closes above 0.6310, it could trigger an advance to 0.6355.’ We also highlighted that ‘the chance of AUD closing above 0.6310 will increase in the coming days as long as 0.6200 (‘strong support’ level) is not breached.’ Our outlook remains the same.”