AUD/USD is close to testing 0.6540 - UOB Group

Australian Dollar (AUD) could first test 0.6515 against the US Dollar (USD) before the risk of a pullback increases. In the longer run, price action suggests AUD could continue to rise and test the significant resistance level at 0.6540, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

AUD can continue to rise

24-HOUR VIEW: "We expected AUD to 'trade in a range between 0.6445 and 0.6490' yesterday. However, after dipping to 0.6452, AUD rose, reaching a high of 0.6504. Although there has been no marked increase in upward momentum, AUD could first test 0.6515 before the risk of a pullback increases. The major resistance at 0.6540 is probably out of reach. Support is at 0.6475; a breach of 0.6460 would indicate the current upward pressure has eased."

1-3 WEEKS VIEW: "On Tuesday (03 Jun, spot at 0.6490), we highlighted that the 'price action suggests AUD could continue to rise and test the significant resistance level at 0.6540.' Since then, AUD has not been able to make much headway on the upside. That said, we will maintain our view provided that the 'strong support' at 0.6430 (no change in level) is not breached."