There’s scope for Australian Greenback (AUD) to rise above the early-month excessive of 0.6515 vs US Greenback (USD); any additional advance is unlikely to achieve 0.6550. Within the longer run, fast buildup in momentum suggests AUD is prone to commerce with an upward bias towards 0.6550, UOB Group’s FX analysts Quek Ser Leang and Peter Chia observe.
Any additional advance is unlikely to achieve 0.6550
24-HOUR VIEW: “Final Friday, we famous that AUD ‘is underneath gentle downward stress.’ We held the view that AUD ‘is prone to edge decrease to 0.6395.’ We have been incorrect, as after dipping to 0.6409, AUD lifted off and closed greater by a whopping 1.39% (0.6498). The fast advance seems to be extreme, however there’s scope for AUD to rise above 0.6515, the excessive seen earlier this month. Given the overbought circumstances, any additional advance is unlikely to achieve 0.6550. On the draw back, we count on any pullback to remain above 0.6460 (minor help is at 0.6480).”
1-3 WEEKS VIEW: “Our most up-to-date narrative was from final Wednesday (21 Could, spot at 0.6425) whereby ‘the latest uneven worth motion has resulted in a combined outlook.’ We have been of the view that AUD ‘is prone to commerce in a variety between 0.6370 and 0.6480 in the intervening time.’ Final Friday, AUD surged and reached a excessive of 0.6500. There was a fast buildup in momentum, and we count on AUD to commerce with an upward bias towards 0.6550. To maintain the momentum buildup, AUD should stay above 0.6430.”
