There is scope for Australian Dollar (AUD) to test 0.6520 before a pullback can be expected. In the longer run, the current price movements are likely part of a 0.6450/0.6555 range trading phase, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Upward momentum has not increased much

24-HOUR VIEW: "Yesterday, we expected to 'trade in a sideways range of 0.6455/0.6490.' Instead of trading sideways, AUD rose to a high of 0.6509, closing on a firm note at 0.6502 (+0.51%). Despite the advance, upward momentum has not increased much. That said, there is scope for AUD to test 0.6520 before a pullback can be expected. Support is at 0.6485, followed by 0.6470."

1-3 WEEKS VIEW: "We have held a negative AUD stance since early last week. In our most recent narrative from Monday (04 Aug, spot at 0.6465), we highlighted that 'downward momentum is slowing, a breach of 0.6520 would indicate AUD is not breaking below 0.6405.' Yesterday, AUD rose to a high of 0.6509. Although our ‘strong resistance’ at 0.6520 has not been breached yet, downward momentum has faded. The current price movements are likely part of a range trading phase, probably between 0.6450 and 0.6555."