AUDUSD: Further gains could retest 0.6820 – UOB

In the opinion of Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group, AUDUSD could extend the uptrend to the 0.6820 region in the short term.

Key Quotes

24-hour view: “We expected AUD to consolidate yesterday. However, it traded in a choppy manner between 0.6686 and 0.6798. Despite the choppy price actions, the underlying tone appears to have softened somewhat and AUD is likely to edge lower. However, any decline is not expected to break the support at 0.6680. Resistance is at 0.6775 but only a clear break of 0.6800 would indicate that AUD is ready to head higher instead of edging lower.”

Next 1-3 weeks: “Two days ago (14 Nov, spot at 0.6695), we highlighted that AUD is likely to advance further, albeit at a slower pace. We indicated that the level to monitor is at 0.6775. Yesterday (15 Nov), AUD took out 0.6775 and rose to 0.6798 before pulling back. While AUD rose above 0.6775, upward momentum has not improved much. However, as long as the ‘strong support’ at 0.6670 is not breached, there is room for AUD to advance further to 0.6820.”