AUD must break and hold above 0.6765 – UOB Group

The Australian dollar (AUD) could continue to rise, but any advance is likely to be part of a higher 0.6745/0.6765 range. In the longer term, the AUD needs to break and hold above 0.6765 before an advance to 0.6825 can be expected, note UOB Group FX strategists Quek Ser Leang and Lee Sue Ann.

An advance to 0.6825 can be expected

24 HOURS: “While the AUD gained 0.70% (0.6752) yesterday, the upside momentum did not build much. Today, it could continue to rise, but any advance is likely part of a larger range of 0.6725/0.6765. In other words, the AUD is unlikely to break clearly below 0.6725 or above 0.6745.” WEEKS 1-3: “AUD fell to 0.6622 last week and then bounced back. There was a temporary build-up of momentum. From here, the AUD needs to break and hold above 0.6765 before an advance to 0.6825 can be expected. The likelihood of the AUD breaking clear above 0.6765 will increase in the coming days as long as 0.6700 is not breached.”