AUD/USD: Long-term momentum remains strong – UOB Group

Australian Dollar (AUD) is likely to trade in a range between 0.6330 and 0.6365 against the US Dollar (USD). In the longer run, momentum remains strong; AUD could continue to advance, potentially to 0.6410, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

AUD potentially can continue to advance towards 0.6410

24-HOUR VIEW: "Two days ago, AUD traded in a range and closed largely unchanged at 0.6357 (+0.06%). Yesterday, we pointed out that we 'continue to expect range trading, but the softened underlying tone suggests a lower range of 0.6335/0.6370.' Our view was not wrong as AUD traded between 0.6333 and 0.6367 and closed largely unchanged again at 0.6354 (-0.04%). The price movements continue to suggest range trading, likely between 0.6330 and 0.6365."

1-3 WEEKS VIEW: "We have held a positive AUD view since early this month. In our latest narrative from two days ago (17 February, spot at 0.6355), we highlighted, 'momentum remains strong, and we continue to expect AUD to advance, potentially to 0.6410.' AUD traded in a range over the past couple of days, and we continue to hold the same view as long as 0.6305 (‘strong support’ level was at 0.6290 yesterday) is not breached."