Set to test last month’s high at 0.6800 – UOB Group

The Australian dollar (AUD) could continue to advance, possibly to last month’s high near 0.6800, note UOB Group FX strategists Quek Ser Leang and Peter Chia.

0.6800 is the next level to watch

24 HOURS: “We expected the AUD to trade in a range of 0.6720/0.6765. Our view was incorrect as it fell to a low of 0.6697, closing 0.58% lower (0.6705). There was a slight increase in downside momentum, but probably not enough to threaten the strong support at 0.6660. Resistance is 0.6725; a break of 0.6750 would mean that the current slight downward pressure is gone.”

WEEKS 1-3: “Yesterday (22 August at 0.6750), we indicated that ‘while the upside momentum has slowed somewhat, it is too early to call for an end to the AUD advance.’ I added, “provided the ‘strong support’ level at 0.6660 is not removed, the AUD could continue to advance, possibly to last month’s high near 0.6800.” There is no change in our vision.”