Sharp rise seems extreme, however there’s room for Australian Greenback (AUD) to check 0.6510 earlier than leveling off. Within the longer run, worth motion suggests AUD may proceed to rise and check the numerous resistance stage at 0.6540, UOB Group’s FX analysts Quek Ser Leang and Peter Chia observe.
AUD might proceed to rise
24-HOUR VIEW: “Whereas we anticipated AUD to ‘edge increased’ yesterday, we indicated that ‘any advance is probably going restricted to a check of 0.6465.’ We additionally indicated that ‘the key resistance at 0.6485 will not be anticipated to come back below menace.’ Our directional name was right, however we didn’t anticipate the sharp advance as AUD surged and broke above each 0.6465 and 0.6485, reaching a excessive of 0.6500. The sharp rise seems extreme, however there’s room for AUD to check 0.6510 earlier than leveling off. The most important resistance at 0.6540 is unlikely to come back below menace. On the draw back, assist ranges are 0.6475 and 0.6460.”
1-3 WEEKS VIEW: “In our most up-to-date narrative from final Thursday (28 Could, spot at 0.6420), we highlighted that ‘in the meanwhile, AUD is predicted to commerce in a variety of 0.6380/0.6485.’ Yesterday, AUD broke decisively above 0.6485. The value motion suggests AUD may proceed to rise and check the numerous resistance stage at 0.6540. On the draw back, ought to AUD break under 0.6430, it could imply that it’s not prepared to go increased simply but.”
