The Australian Dollar (AUD) is expected to trade in a sideways range of 0.6885/0.6935. In the longer run, AUD is likely to edge higher; it remains to be seen if there is enough momentum for it to reach 0.6980, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann note.

May have enough momentum for AUD to reach 0.6980

24-HOUR VIEW: “Two days ago, AUD rose to 0.6937 and then pulled back slightly. Yesterday, we highlighted that ‘although upward momentum has not increased much, there is room for AUD to test 0.6940 before another pullback is likely.’ AUD subsequently rose to 0.6944, pulling back to close at 0.6913 (+0.13%). There has been no further increase in momentum, and instead of continuing to rise today, AUD is expected to trade in a sideways range of 0.6885/0.6935.”

1-3 WEEKS VIEW: “We continue to hold the same view as yesterday (30 Sep, spot at 0.6910). As indicated, while the recent price action suggests that AUD is likely to edge higher, it remains to be seen if there is enough momentum for AUD to reach 0.6980. On the downside, a breach of 0.6860 (‘strong support’ level was at 0.6845 yesterday) would mean that AUD is not advancing further.”