Australian Dollar (AUD) is expected to trade in a 0.6335/0.6370 range vs the US Dollar (USD). In the longer run, momentum remains strong; AUD could continue to advance, potentially to 0.6410, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

AUD can continue to advance

24-HOUR VIEW: "Following AUD sharp rise last Friday, we pointed out yesterday that 'the rally appears to be overdone, and AUD is unlikely to rise much further.' We expected AUD to 'trade in a 0.6325/0.6375 range.' AUD subsequently traded in a narrower range than expected (0.6346/0.6374), closing largely unchanged at 0.6357 (+0.06%). We continue to expect range trading today, but the softened underlying tone suggests a lower range of 0.6335/0.6370."

1-3 WEEKS VIEW: "Our update from yesterday (17 Feb, spot at 0.6355) remains valid. As highlighted, 'momentum remains strong, and we continue to expect AUD to advance, potentially to 0.6410.' On the downside, should AUD break below 0.6290 (no change in ‘strong support’ level from yesterday), it would mean that 0.6410 is out of reach for now."