AUD/USD: Further upside remains on the cards – UOB

The continuation of the upside momentum appears in store for AUD/USD in the short-term horizon, according to Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group.

Key Quotes

24-hour view: Our view for AUD to trade in a range between 0.6470 and 0.6535 yesterday was incorrect, as it fell to a low of 0.6461. Despite the decline, downward momentum has hardly increased. That said, there is scope for AUD to edge lower, but it is unlikely to break clearly below 0.6440. On the upside, if AUD breaks above 0.6510 (minor resistance is at 0.6495), it would indicate that the current mild downward pressure has eased. 

Next 1-3 weeks: We continue to hold the same view as yesterday (16 Nov, spot at 0.6510). As highlighted, while AUD is likely to advance further, upward momentum is not that strong for now, and the major resistance at 0.6585 might not come into view soon. The upside bias is intact as long as AUD stays above 0.6400 (no change in ‘strong support’ level from yesterday).