AUD/USD: A slight change of breaking above 0.6685 – UOB Group

For the time being, Australian Dollar (AUD) is likely to trade between 0.6600 and 0.6685, UOB Group strategists note.

A breach of 0.6685 is possible

24-HOUR VIEW: “AUD dipped to 0.6627 two days ago and then recovered to a high of 0.6668. Yesterday, we pointed out that ‘the recovery did not result in any clear increase of momentum.’ We added, “Instead of continuing to recover, AUD is more likely to consolidate between 0.6635 and 0.6675.’ Our view was not wrong, as AUD subsequently traded in a range of 0.6636/0.6673, closing slightly lower at 0.6648 (-0.13%). While we continue to expect AUD to trade in a range, the softened underlying tone suggests a lower range of 0.6625/0.6665.”

1-3 WEEKS VIEW: “Our update from two days ago (24 Jun, spot at 0.6640) is still valid. As indicated, the current price action is likely part of a range-trading phase. For the time being, AUD is likely to trade between 0.6600 and 0.6685.”