The Australian Dollar (AUD) is expected to trade in a range between 0.6720 and 0.6755. Increasing upward momentum suggests AUD is likely to continue to rise to 0.6800, UOB Group analysts Quek Ser Leang and Lee Sue Ann note.

AUD is likely to continue to rise to 0.6800

24-HOUR VIEW: “Yesterday, we indicated that ‘while there is room for AUD to rise above 0.6755 today, overbought conditions suggest it might not be able to maintain a foothold above this level.’ We added, ‘the resistance level at 0.6770 is also unlikely to come under threat.’ Our view turned out to be correct, as AUD rose to 0.6762 and then pulled back to close at 0.6737 (-0.16%). AUD appears to have entered a range trading phase. We expect AUD to trade between 0.6720 and 0.6755 today.”

1-3 WEEKS VIEW: “We continue to hold the same as yesterday (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.”