AUD/USD: Further gains await above 0.6490 – UOB

AUD/USD is expected to gain serious upside traction on a breakout of the 0.6490 level, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “We highlighted last Friday, AUD ‘is more likely to consolidate and trade between 0.6300 and 0.6400’. While AUD subsequently traded between 0.6338 and 0.6399, it ended the day on a firm note at 0.9397 (+0.43%). Upward momentum has picked up, albeit not by much and the bias for today is tilted to the upside. From here, barring a move below 0.6360, AUD is expected to edge higher but a break of the month-to-date high at 0.6445 is unlikely for today.”

Next 1-3 weeks: “There is not much to add to the update from last Friday (24 Apr, spot at 0.6345). As highlighted, the outlook for AUD is mixed and it could trade between 0.6250 and 0.6450 for a period. Looking forward, the risk for the next sustained directional move is tilted to the upside but AUD has to move and stay above 0.6490 in order to indicate it has enough momentum to move to 0.6580.”