In the opinion of UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang, further upside in AUD/USD is seen facing a firm resistance around 0.6485.
Key Quotes
24-hour view: We highlighted yesterday that “as long as AUD stays above 0.6390 (minor support is at 0.6410), it could rise further.” We also highlighted that “as upward momentum is not that strong, it is unlikely to threaten the major resistance at 0.6485 today.” Instead of rising further, AUD traded in a range of 0.6410/0.6440 before closing largely unchanged at 0.6428 (-0.04%). The underlying tone still appears firm, and we continue to see room for AUD to advance. Barring a surge in momentum, the major resistance at 0.6485 is still unlikely to come under threat. Support levels remain at 0.6410 and 0.6390.
Next 1-3 weeks: There is no change in our view from yesterday (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 0.6370.
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