Limited in the range 0.6775/0.6825– UOB Group

The Australian dollar (AUD) is expected to trade in a sideways range of 0.6775/0.6825. In the longer term, there is still room for the AUD to rise further, but there may not be enough momentum for it to challenge 0.6870, note UOB Group FX analysts Quek Ser Leang and Peter Chia.

AUD may try to challenge 0.6870

24 HOURS: “AUD traded between 0.6784 and 0.6829 last Friday, narrower than our expected sideways trading range of 0.6780/0.6840. There has been no increase in bullish or bearish momentum and we continue to expect the AUD to trade sideways. Estimated range for today: 0.6775/0.6825.”

WEEKS 1-3 VIEW: “We continue to maintain the same view as last Friday (September 20, point at 0.6800). As pointed out, while there is still room for the AUD to continue rising, it may not have enough momentum to challenge significant resistance at 0.6870. On the downside, a break of 0.6740 (no change to the ‘strong support’ level) would mean that the upward pressure that started early last week has abated.”