In the opinion of UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang, AUD/USD is predicted to keep the 0.6570-0.6770 range unchanged for the time being.

Key Quotes

24-hour view: “After AUD soared on Monday, we highlighted yesterday that ‘the rapid rise appears to be overdone and AUD is unlikely to advance much further’. We expected AUD to trade in a range between 0.6615 and 0.6715. AUD did not strengthen further as it traded in a range of 0.6633/0.6696. Upward momentum appears to be building, albeit tentatively. Today, AUD is likely to edge higher but a sustained rise above 0.6715 is unlikely (next resistance is at 0.6770). On the downside, a breach of 0.6630 (minor support is at 0.6650) would indicate that the build-up in momentum has fizzled out.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (14 Mar, spot at 0.6665). As highlighted, AUD appears to have moved into a consolidation phase and it is likely to trade in a range between 0.6570 and 0.6770 for the time being.”