The current price movements are likely part of a range-trading phase between 0.6550 and 0.6605. In the longer run, the price action continues to suggest AUD strength; the next level to watch is 0.6630, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Price action continues to suggest AUD strength

24-HOUR VIEW: "While we indicated yesterday that AUD 'could continue to strengthen,' we were of the view that it 'is unlikely to be able to break above 0.6630.' We noted that 'there is a minor resistance at 0.6615.' We were not wrong, as AUD rose to a high of 0.6616. However, we did not expect AUD to drop sharply from the high, reaching a low of 0.6559. Upward momentum has eased with the decline, and the current price movements are likely part of a range-trading phase between 0.6550 and 0.6605."

1-3 WEEKS VIEW: "We turned positive on AUD two days ago (28 Oct, spot at 0.6555). Yesterday (29 Oct, spot at 0.6595), we stated that 'the price action continues to suggest AUD strength.' We pointed out that 'the next level to watch is 0.6630.' We will maintain our view as long as 0.6535 (no in change in ‘strong support’ level) is not breached."