Price movements are likely part of a range trading phase, expected to be between 0.6185 and 0.6230. In the longer run, upward momentum is building, but AUD must close above 0.6245 before a move to 0.6300 can be expected, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Above 0.6245, AUD can move to 0.6300

24-HOUR VIEW: "Following AUD rise to 0.6247 two days ago, we noted yesterday that it 'seems to have enough momentum to retest the 0.6245 level.' We pointed out that 'given the overbought conditions, the chance of a sustained rise above this major resistance is not high.' Our assessment was not wrong, as AUD rose to 0.6248, pulling back to close lower by 0.22% at 0.6213. The current price movements are likely part of a range trading phase, expected to be between 0.6185 and 0.6230."

1-3 WEEKS VIEW: "We noted that yesterday (16 Jan, spot at 0.6225) that 'upward momentum is building.' However, we pointed out that AUD 'must close above 0.6245 before a move to 0.6300 can be expected.' We also pointed out that 'the probability of AUD closing above 0.6245 will remain intact as long as the ‘strong support’ level, currently at 0.6170, is not breached.” Our assessment remains unchanged."