FX Strategists at UOB Group see the Aussie Dollar gaining further traction and visit the 0.69 area and possibly above in the near term.
24-hour view: “AUD traded between 0.6849 and 0.6885 yesterday, slightly higher and narrower than our expected 0.6840/0.6880 range. The underlying tone has firmed somewhat and a move above 0.6885 would not be surprising. That said, the next resistance at 0.6910 is likely out of reach for today. Support is at 0.6845 but the more significant support is at 0.6825”.
Next 1-3 weeks: “AUD eked out a fresh 6-week high of 0.6885 yesterday (11 Sep) before easing off to close little changed at 0.6863 (+0.02%). There is no change in our view and we continue to see chance for the rebound that started last week to tackle 0.6910. That said, after the rapid rise over the past week, shorter-term indicators are overbought and AUD has to continue to advance as a ‘pause’ around these overbought levels would increase the risk of a short-term top. On the downside, a breach of 0.6825 (strong support previously at 0.6800) would indicate that the current upward has eased and AUD has moved into a sideway-trading phase”.