In the opinion of Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group, the constructive outlook in AUD/USD is expected to remain unchallenged while the pair trades above the 0.6610 level.

Key Quotes

24-hour view: “AUD traded in a whippy manner between 0.6641 and 0.6706 yesterday before closing at 0.6694 (+0.34%). The underlying tone appears to be a tad firm and AUD is likely to edge higher today. However, any advance is unlikely to break clearly above the major resistance at 0.6740 (there is another resistance at 0.6720). Support is at 0.6675, followed by 0.6645.”

Next 1-3 weeks: “Our most recent narrative was from Wednesday (03 May, spot at 0.6660) wherein ‘as long as AUD holds above 0.6610, it could edge higher to 0.6740’. We indicated that ‘the odds of a sustained rise above 0.6740 are not high’. There is no change in our view.”