Further range trading seems likely, probably in a range of 0.6740/0.6785. Room for the Australian Dollar (AUD) to continue to rise, but it has to surpass 0.6800 before further advance can be expected, UOB Group FX strategists Quek Ser Leang and Lee Sue Ann note.
AUD eyes 0.6735
24-HOUR VIEW: “AUD trade between 0.6753 and 0.6789 yesterday, narrower than our expected range of 0.6745/0.6790. Further range trading seems likely, even though the slight softened underlying tone suggests a lower range of 0.6740/0.6785.”
1-3 WEEKS VIEW: ”We highlighted last Friday (12 Jul, spot at 0.6765) that ‘while there is room for AUD to continue to rise, it has to surpass 0.6800 before further advance can be expected.’ Our view remains unchanged, but given the overbought conditions, it remains to be seen if AUD can break above 0.6800. Overall, only a breach of 0.6735 (no change in ‘strong support’ level) would indicate that the AUD strength from two weeks ago has come to an end.”
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