AUD/USD: May break above 0.6560 in near term

The Australian Dollar (AUD) could pullback, but any decline is unlikely to threaten 0.6480. Otherwise, AUD is likely to trade in a 0.6400/0.6600 range for the time being, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann note.

Resistance level is at 0.6560

24-HOUR VIEW: “Yesterday, when AUD was trading at 0.6520, we indicated that ‘the underlying tone still seems firm, and we continue to expect AUD to rebound.’ However, we pointed out that ‘any advance is unlikely to reach the major resistance at 0.6600.’ Our view was not wrong, as AUD rose to 0.6575 then pulled back, closing unchanged at 0.6519. The pullback has gathered some momentum. Today AUD could continue to pullback, but any decline is unlikely to threaten 0.6480 (minor support is at 0.6500). Resistance level is at 0.6560.”

1-3 WEEKS VIEW: “After holding a negative AUD view since late last month, we indicated two days ago (06 Aug, spot at 0.6510) that the weakness has stabilised. We expected AUD to trade in neutral range of 0.6400/0.6600 for the time being. There is no change in our view.”

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