AUD/USD: Expected to edge higher to 0.6575 – UOB Group

Australian Dollar (AUD) is expected to edge higher to 0.6575; the next resistance at 0.6595 is not expected to come under threat. In the longer run, AUD could edge higher to 0.6575, with lesser odds of reaching 0.6595, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Next resistance at 0.6595 is not expected to come under threat

24-HOUR VIEW: "After AUD rose sharply on the open yesterday, we noted that 'upward momentum is increasing.' However, we pointed out that 'it is not enough to indicate a sustained advance.' We expected AUD to 'trade in a higher range between 0.6510 and 0.6555.' AUD then traded in a range of 0.6529/0.6559, closing on a firm note at 0.6556, up by 0.65%. Upward momentum continues to increase, and today, we expect AUD to edge higher toward 0.6575. We do not expect the next resistance at 0.6595 to come under threat. To keep the momentum going, AUD must not break below 0.6530, with minor support at 0.6540."

1-3 WEEKS VIEW: "In our most recent narrative from last Tuesday (21 Oct, spot at 0.6515), we highlighted that 'for the time being, we expect AUD to trade in a sideways range of 0.6445/0.6555.' Yesterday, AUD rose to a high of 0.6559. There has been a slight increase in upward momentum, and AUD could edge higher to 0.6575, with lesser odds of reaching 0.6595. On the downside, if AUD breaks below 0.6515, it would suggest that AUD is likely to continue trading sideways."