Recovery faces a tough barrier at 0.6485 – UOB

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In the view of UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang, further upside in AUD/USD should meet a strong barrier around 0.6485.

Key Quotes

24-hour view: Yesterday, we expected AUD to trade in a range between 0.6390 and 0.6450. However, AUD traded in a range of 0.6419/0.6460 before closing at 0.6441 (+0.31%). Despite rising to a high of 0.6460, there is no increase in upward momentum. Today, we continue to expect AUD to trade in a range, likely between 0.6415 and 0.6460.

Next 1-3 weeks: There is no change in our view from Tuesday (12 Sep, spot at 0.6395), wherein AUD “could rebound further, but any advance is expected to face solid resistance at 0.6485”. The upward pressure is intact as long as AUD remains above 0.6385 (‘strong support’ level previously at 0.6370). Looking ahead, if AUD breaks below 0.6385, it would mean that AUD is likely to trade in a range instead of rebounding further.