Australian Dollar (AUD) is likely to continue to edge higher, but it is unlikely to reach 0.6700. In the longer run, the price action continues to suggest a higher AUD; the next level to watch is 0.6700, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Price action continues to suggest a higher AU

24-HOUR VIEW: "We expected AUD to 'consolidate in a range between 0.6625 and 0.6665' yesterday. Instead of consolidating, AUD edged up to a high of 0.6674. Although upward momentum has not increased significantly, AUD is likely to continue to edge higher. However, based on the current momentum, AUD is unlikely to reach the major resistance at 0.6700 (there is another resistance level at 0.6685). Support levels are at 0.6660 and 0.6645."

1-3 WEEKS VIEW: "We have maintained a positive AUD view since early last week (see annotations in the chart below). In our latest narrative from last Friday (12 Sep, spot at 0.6665), we highlighted that the recent 'price action continues to suggest a higher AUD, and the next level to watch is 0.6700.' We will maintain our view as long as 0.6625 (‘strong support’ level, previously at 0.6590) is not breached."