AUD/USD: Has a chance to reach 0.6560, possibly 0.6600 - UOB Group

The Australian Dollar (AUD) is expected to trade between 0.6485 and 0.6535. 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 price action is part of a rebound

24-HOUR VIEW: "We expected AUD to 'rise further to 0.6560' yesterday. However, AUD pulled back sharply from a high of 0.6545 to 0.6485, before recovering to close at 0.6506 (-0.40%). The current price movements are likely part of a range trading phase. Today, we expect AUD to trade between 0.6485 and 0.6535."

1-3 WEEKS VIEW: "Our update from yesterday (20 Nov, spot at 0.6530) remains valid. As highlighted, 'the current price action is 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 (no change in 'strong support' level)."

"Elsewhere, EUR/CHF remains on the low near 0.93. In August we had felt that EUR/CHF would stay offered for the rest of the year and recent events only add to that conviction. What interests us is whether the Swiss National Bank will take rates below 0.50% in this easing cycle (we think not). And spread compression should weigh on EUR/CHF as the ECB cuts rates 150bp into next summer. Expect EUR/CHF to grind towards 0.92 - with the main risk now probably being an SNB official saying the policy rate could go negative again after all."