In the opinion of UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang, AUD/USD could advance to 0.6915 once 0.6850 is cleared.

Key Quotes

24-hour view: “We expected AUD to ‘continue to advance’ yesterday. We added, ‘overbought conditions suggest 0.6850 could be out of reach today’. Our view turned out to be correct as AUD rose to 0.6847 before easing. Upward pressure has faded and the current price movement is likely part of a consolidation phase. Today, we expect AUD to trade between 0.6765 and 0.6845.”

Next 1-3 weeks: “Yesterday (01 Dec, spot at 0.6800), we indicated that the ‘rapid rise in AUD appears to be running ahead but there is room for AUD to rise further to 0.6850’. AUD subsequently rose to 0.6847 before easing off. Further AUD strength is not ruled out but it has to break clearly above 0.6850 before an advance to 0.6915 is likely. The likelihood of a clear break of 0.6850 would remain intact as long as AUD does not move below 0.6730 (‘strong support’ level was at 0.6715 yesterday).”