Australian Dollar (AUD) is likely to trade in a sideways range between 0.6220 and 0.6290. In the longer run, current price action is likely the early stages of a recovery phase that could potentially reach 0.6350, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

To keep the momentum, AUD must not break below 0.6190

24-HOUR VIEW: “Yesterday, we indicated that ‘provided that 0.6205 is not breached, AUD could break above 0.6305.’ The ensuing price movements did not turn out as we expected, with AUD fluctuating between 0.6209 and 0.6289. Upward momentum has slowed to an extent, and AUD is likely to trade sideways today, expected to be between 0.6220 and 0.6290.”

1-3 WEEKS VIEW: “Following the strong rise in AUD on Monday, we highlighted yesterday (21 Jan, spot at 0.6275) that ‘the current price action is likely the early stages of a recovery phase that could potentially reach 0.6350.’ We also indicated that ‘to keep the momentum going, AUD must not break below 0.6190.’ Our view remains unchanged.”