Australian Dollar (AUD) is expected to trade in a 0.6165/0.6220 range. In the longer run, for the time being, AUD is likely to trade in a 0.6140/0.6245 range, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

The buildup in momentum seems to have faded

24-HOUR VIEW: "We indicated last Friday that 'the current price movements are likely part of a range trading phase, expected to be between 0.6185 and 0.6230.' However, AUD fluctuated between 0.6165 and 0.6227 in NY trade, closing at 0.6190 (-0.37%). The price action did not result in any increase in either downward or upward momentum, and the current price movements are likely part of a range trading phase. Today, we expect AUD to trade in a 0.6165/0.6220 range."

1-3 WEEKS VIEW: "Last Thursday (16 Jan, spot at 0.6225), we noted 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.' On Friday, AUD dipped briefly below our ‘strong support’ level of 0.6170, reaching a low of 0.6165. The buildup in momentum seems to have faded. For the time being, AUD is likely to trade in a 0.6140/0.6245 range."