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AUD/USD keeps the constructive outlook unchanged but prospects of a move to the mid-0.6600s have lost traction, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “While AUD traded in a quiet manner yesterday, upward momentum is beginning to pick-up and the bias from here is titled to the upside. As momentum is not strong for now, any advance is likely limited to a test of the strong resistance at 0.6580 (next resistance at 0.6600 is unlikely to come into the picture). Support is at 0.6525 followed by the much stronger level at 0.6495.”

Next 1-3 weeks: “We highlighted last Thursday (21 May, spot at 0.6580) that ‘further AUD strength is likely’ but we were of the view ‘a sustained rise above 0.6645 is not high for now’. The subsequent pull-back in AUD has dented the upward momentum but as long as 0.6500 is intact (no change in ‘strong support’ level), the risk is still on the upside. That said, the prospect for AUD to move to 0.6645 has diminished.”