There’s scope for Australian Greenback (AUD) to rise additional, however any advance is probably going half of a better vary of 0.6810/0.6860. Within the longer run, AUD might proceed to advance, however the scope for additional positive factors is probably going restricted. The degrees to observe are 0.6860 and 0.6885, UOB Group’s FX analysts Quek Ser Leang and Peter Chia word.
Scope for Australian Greenback to rise additional
24-HOUR VIEW: “Our view for AUD to consolidate yesterday was incorrect. As an alternative of consolidating, AUD surged to a excessive of 0.6848, closing on a robust word at 0.6842, up by 1.18%. Whereas the outsized rise seems extreme, there may be scope for AUD to rise additional. Nonetheless, any advance is probably going half of a better vary of 0.6810/0.6860. In different phrases, AUD is unlikely to interrupt clearly above 0.6860.”
1-3 WEEKS VIEW: “We highlighted two days in the past (21 Jan, spot at 0.6730) that ‘there’s a probability for AUD to edge increased and check the numerous resistance at 0.6765’. After AUD rose above 0.6765, we highlighted yesterday (22 Jan, spot at 0.6755) that ‘upward momentum has elevated additional, and AUD might check 0.6790 subsequent’. Nonetheless, as an alternative of testing 0.6790, AUD broke above this degree and surged to a excessive of 0.6845. The rally over the previous few days seems to be extreme however with no signal of a pause but, AUD might proceed to advance. That stated, the scope for additional positive factors is probably going restricted. The degrees to observe are 0.6860 and 0.6885. On the draw back, if AUD breaks under 0.6770, it might point out that the present sturdy upward stress is easing.”
