Australian Greenback (AUD) is anticipated to consolidate in a variety between 0.6455 and 0.6510 vs US Greenback (USD). Within the longer run, fast buildup in momentum suggests AUD is more likely to commerce with an upward bias towards 0.6550, UOB Group’s FX analysts Quek Ser Leang and Peter Chia notice.
Upwards momentum builds up quick
24-HOUR VIEW: “Final Friday, AUD soared to 0.6500. Within the early Asian session yesterday, we indicated that ‘the fast advance seems to be extreme, however there may be scope for AUD to rise above 0.6515, the excessive seen earlier this month.’ We added, ‘given the overbought situations, any additional advance is unlikely to achieve 0.6550.’ AUD then rose to 0.6537, pulling again to shut modestly decrease at 0.6490 (-0.13%). AUD has not totally unwound from overbought situations. At this time, we anticipate AUD to consolidate in a variety between 0.6455 and 0.6510.”
1-3 WEEKS VIEW: “We revised our view to constructive yesterday (26 Might, spot at 0.6495), indicating that ‘there was a fast buildup in momentum, and we anticipate AUD to commerce with an upward bias towards 0.6550.’ We are going to preserve the identical view so long as AUD stays above 0.6430 (no change in ‘sturdy help’ degree).”
