Additional sideways buying and selling in Australian Greenback (AUD) vs US Greenback (USD) seems probably, in all probability in a spread of 0.6480/0.6520. 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.
AUD might not break above 0.6555
24-HOUR VIEW: “AUD rose to a excessive of 0.6538 final Thursday. On Friday, when it was at 0.6510, we indicated that ‘though there may be nonetheless no vital improve in upward momentum, AUD might take a look at 0.6540 earlier than the chance of a extra sizeable pullback will increase.’ Our expectations didn’t materialise, as AUD traded sideways between 0.6580 and 0.6517. Momentum indicators are largely flat, and additional sideways buying and selling seems probably in the present day, in all probability in a spread of 0.6480/0.6520.”
1-3 WEEKS VIEW: “Final Tuesday (03 Jun, spot at 0.6490), we highlighted that the current ‘worth motion suggests AUD might proceed to rise and take a look at the numerous resistance stage at 0.6540.’ After AUD rose to 0.6538, we highlighted on Friday (06 Jun, spot at 0.6510) that ‘the bias stays on the upside, nevertheless it stays to be seen if AUD can break clearly above 0.6555.’ We are going to preserve our view as lengthy 0.6455 (no change in ‘sturdy help’ stage) is just not breached.”
