There has been a slight increase in momentum; the Australian Dollar (AUD) is expected to rise further to 0.6560. In the longer run, current price action is part of a rebound that could reach 0.6560, possibly 0.6600, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

Current rebound can reach 0.6560

24-HOUR VIEW: “We expected AUD to trade in a range between 0.6470 and 0.6520 yesterday. Our view was incorrect as AUD rose to 0.6534. There has been a slight increase in momentum. Today, AUD is expected to rise further to 0.6560. The major resistance at 0.6600 is unlikely to come into view. To maintain the buildup in momentum, AUD must not break below 0.6500, with minor support at 0.6515.”

1-3 WEEKS VIEW: “Yesterday (19 Nov, spot at 0.6505), we noted that ‘downward momentum is slowing.’ We pointed out, ‘a break above 0.6520 would mean that instead of continuing to weaken, AUD is more likely to consolidate.’ AUD then broke above 0.6520, reaching a high of 0.6534. Not only has downward momentum faded, but upward momentum has also increased to an extent. We view the current price action as part of a rebound that could reach 0.6560, possibly 0.6600. We will maintain the same view as long as AUD remains above 0.6460.”