Another test of 0.6485 in AUD/USD seems likely while above 0.6385, comment Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group.
24-hour view: Last Friday, we expected AUD to trade in a range between 0.6415 and 0.6460. However, AUD rose to 0.6474, dropped back to 0.6426, and then settled at 0.6431 (-0.16%). There is no clear directional bias for now, and we continue to expect AUD to trade in a range, probably between 0.6410 and 0.6455.
Next 1-3 weeks: Our latest narrative was from last Tuesday (12 Sep, spot at 0.6395), wherein AUD “could rebound further, but any advance is expected to face solid resistance at 0.6485”. Last Friday, AUD rose to 0.6474 and then pulled back. Despite the advance, there is no increase in upward momentum. However, as long as 0.6385 (no change in ‘strong support’ level) is not breached, there is a chance for AUD to test the resistance at 0.6485. At this stage, the odds for AUD to break clearly above 0.6485 are not high.