Australian Greenback (AUD) may first take a look at 0.6540 in opposition to US Greenback (USD) earlier than the chance of a pullback will increase. Within the longer run, bias stays on the upside, nevertheless it stays to be seen if AUD can break clearly above 0.6555, UOB Group’s FX analysts Quek Ser Leang and Peter Chia observe.
Bias stays on the upside
24-HOUR VIEW: “When AUD was at 0.6490 within the early Asian session yesterday, we indicated that ‘though there was no marked enhance in upward momentum, AUD may first take a look at 0.6515 earlier than the chance of a pullback will increase.’ We added, ‘the foremost resistance at 0.6540 might be out of attain.’ The advance exceeded our expectations, as AUD rose to inside two pips of 0.6540 with a excessive of 0.6538. AUD pulled again from the excessive to shut 0.23% increased at 0.6508. Though there’s nonetheless no important enhance in upward momentum, AUD may, this time, first take a look at 0.6540 earlier than the chance of a extra sizeable pullback will increase. A sustained break above this stage appears unlikely. Word that above 0.6540, there’s a close by resistance at 0.6555. On the draw back, if USD breaks under 0.6480 (minor help is at 0.6495), it could imply that the present upward stress has light.”
1-3 WEEKS VIEW: “In our newest narrative from Tuesday (03 Jun, spot at 0.6490), we highlighted that the current ‘value motion suggests AUD may proceed to rise and take a look at the numerous resistance stage at 0.6540.’ Yesterday, Thursday, AUD rose to a excessive of 0.6538. Regardless of the advance, there isn’t a important enhance in upward momentum. That stated, the bias stays on the upside, nevertheless it stays to be seen if AUD can break clearly above 0.6555. The upside bias will stay intact, offered the ‘sturdy help’ at 0.6455 (stage beforehand at 0.6430) holds.”
