Further range trading seems likely, probably in a range of 0.6725/0.6755. Increasing upward momentum suggests the Australian Dollar (AUD) is likely to continue to rise to 0.6800, UOB Group FX strategists Quek Ser Leang and Peter Chia note.

All eyes on the 0.6800 mark

24-HOUR VIEW: “AUD traded between 0.6724 and 0.6747 yesterday, narrower than our expected range of 0.6720/0.6755. AUD closed largely unchanged at 0.6741 (+0.06%). Further range trading seems likely, probably in a range of 0.6725/0.6755.”

1-3 WEEKS VIEW: “We continue to hold the same as Monday (08 Jul, spot at 0.6745). As highlighted, increasing upward momentum suggests AUD is likely to continue to rise to 0.6800. Overall, only a breach of 0.6690 (no change in ‘strong support’ level from yesterday) would indicate that the AUD strength that started early last week has come to an end.”