AUD/USD STICKS TO THE SIDE-LINED TRADING SO FAR

Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group still expect AUD/USD to navigate between 0.6565 and 0.6760 in the near term.

24-hour view: “While we expected AUD to strengthen yesterday, we were of the view that ‘it is unlikely to break 0.6695’. The anticipated AUD strength exceeded our expectations as AUD rose to a high of 0.6710. Strong upward momentum is likely to lead to further AUD strength but overbought conditions suggest it is unlikely to break the major resistance at 0.6760 (there is a minor resistance at 0.6730). Support is at 0.6685; a break of 0.6670 would indicate that AUD is not advancing further.”

Next 1-3 weeks: “On Monday (27 Mar, spot at 0.6645) we highlighted, that for the time being, AUD is likely to trade between the two major levels of 0.6565 and 0.6760. We continue to hold the same view. Looking ahead, if AUD were to break and stay above 0.6760, it would suggest AUD could continue to rise in the days ahead.”