AUD/USD: May still test 0.6595 - UOB Group

Australian Dollar (AUD) may still test 0.6595 against US Dollar (USD), but a sustained rise above this level is unlikely. In the longer run, should AUD break clearly above 0.6595, it could trigger a further rise toward 0.6620, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Sustained rise above this level is unlikely

24-HOUR VIEW: "Following the sharp rise in AUD that reached a high of 0.6583 on Monday, we indicated yesterday (Tuesday) that 'the rapid rise appears to be excessive, but there is a chance that AUD could test 0.6595 before leveling off.' We added, 'We do not expect 0.6620 to come into view today.' Our expectations did not materialise, as after dipping to a low of 0.6554, AUD rose to 0.6590 before easing off to close largely unchanged at 0.6582 (-0.01%). Although upward momentum is slowing, AUD may still test 0.6595 today. Given the slowing momentum, a sustained rise above this level is unlikely. The next resistance at 0.6620 is also unlikely to come into view. Today's support levels are at 0.6575 and 0.6560."

1-3 WEEKS VIEW: "We continue to hold the same view as yesterday (01 Jul, spot at 0.6575). As highlighted, 'should AUD break clearly above 0.6595, it could trigger a further rise toward 0.6620.' Conversely, a break below 0.6530 ('strong support' level previously at 0.6520) would mean that the advance from late last week has come to an end."