AUD/USD: Unlikely to reach the major resistance at 0.6310 – UOB Group

Australian Dollar (AUD) could break above 0.6265; any further advance is unlikely to reach the major resistance at 0.6310. In the longer run, downward momentum has largely faded; AUD is expected to trade in a range between 0.6080 and 0.6310, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Downward momentum has largely faded

24-HOUR VIEW: "Yesterday, when AUD was at 0.6215, we were of view that it 'could rise, but any advance is likely part of a higher 0.6155/0.6265 range.' We were also of the view that AUD 'is not expected to break clearly above 0.6265.' AUD then dipped briefly to 0.6171, rose to a high of 0.6262 before closing at 0.6257 (+0.47%). There has been an increase in momentum, and today, a break above 0.6265 will not be surprising. However, overbought conditions suggest any further advance is unlikely to reach the major resistance at 0.6310 (there is another resistance level at 0.6285). To maintain the momentum, AUD must remain above 0.6200 (minor support is at 0.6225)." 1-3 WEEKS VIEW: "Our update from yesterday (04 Feb, spot at 0.6215) still stands. As highlighted, the buildup in downward momentum from Monday “has largely faded.” For now, AUD is expected to trade in a range, probably between 0.6080 and 0.6310."