In the opinion of UOB Group’s Markets Strategist Quek Ser Leang and Economist Lee Sue Ann, AUD/USD is expected to remain side-lined between 0.6190 and 0.6390 in the near term.

Key Quotes

24-hour view: “Yesterday, we highlighted that ‘the rapid rise in AUD has room to extend but a break of 0.6350 is unlikely’. Our view turned out to be correct as AUD rose briefly to 0.6340 before easing off. The underlying tone still appears a tad firm and we see chance for AUD to test 0.6350. However, a sustained rise above this level is unlikely. Support is at 0.6285, followed by 0.6265.”

Next 1-3 weeks: “There is no change in our view from yesterday (18 Oct, spot at 0.6295). As highlighted, AUD is not weakening further and AUD is likely to consolidate and trade between 0.6190 and 0.6390 for the time being.”