In the view of Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group, further gains in AUD/USD appears in store for the time being.
Key Quotes
24-Hour View: We expected the AUD to rise yesterday. However, we indicated that “given mild upside pressure, no advance is expected to break key resistance at 0.6485.” Our expectations were not wrong, as the AUD rose to 0.6474 before easing. Mild upward pressure remains intact, and the AUD has room to continue higher. That said, a sustained break above 0.6485 is unlikely. On the downside, a breach of 0.6430 (minor support at 0.6445) would suggest that the current mild upside pressure has eased. \
Next 1-3 weeks: Two days ago (18 Sep, spot at 0.6435), we highlighted that as long as 0.6385 is not breached, there is a chance for AUD to test the resistance at 0.6485. AUD did not quite test 0.6485 as it rose to 0.6474 on Tuesday and Wednesday. Upward momentum has improved, albeit not by much. AUD is likely to trade with an upward bias, and if it breaks above 0.6485, it will likely advance further to 0.6515. The upside bias is intact as long as AUD stays above 0.6410 (‘strong support’ level previously at 0.6385).
