In the opinion of Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group, the continuation of the upside momentum in AUD/USD could retest the 0.6755 region in the next few weeks.
24-hour view: We expected AUD to “trade sideways between 0.6635 and 0.6710” yesterday. However, AUD rose above 0.6710 as it soared to a high of 0.6718. While AUD could continue to rise, the chance of it breaking clearly above 0.6755 today is not high. Support is at 0.6690, followed by 0.6670.
Next 1-3 weeks: Yesterday (08 Jun, spot at 0.6660), we highlighted that AUD could rise further but any advance is expected to encounter solid resistance at 0.6755. While the 0.6755 level remains solid resistance, after yesterday’s strong rise, the chance of AUD breaking clearly above this level has increased. Looking ahead, the next resistance above 0.6755 is at 0.6600. On the downside, a breach of 0.6645 (‘strong support’ level was at 0.6595 yesterday) would indicate that AUD is not advance further.
Keep up with the financial markets, know what's happening and what is affecting the markets with our latest market updates. Analyze market movers, trends and build your trading strategies accordingly.