Bias for Australian Dollar (AUD) is on the upside; lackluster momentum indicates that the major resistance at 0.6555 is likely out of reach. 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.

Bias for AUD is on the upside

24-HOUR VIEW: "AUD rose to a high of 0.6509 two days ago. Yesterday, when it was at 0.6500, we indicated that 'despite the advance, upward momentum has not increased much.' However, we were of the view that 'there is scope for AUD to test 0.6520 before a pullback can be expected.' AUD subsequently rose more than expected to 0.6541, then pulled back to 0.6490 before rebounding to close at 0.6524, up by 0.34%. Although upward momentum appears lackluster, the bias for today is on the upside. That said, the major resistance at 0.6555 is likely out of reach. Note that there is another resistance level at 0.6540. Support is at 0.6510; a breach of 0.6490 would indicate that the upside bias has faded."

1-3 WEEKS VIEW: "We revised our AUD view to neutral yesterday (07 Aug, spot at 0.6500). We indicated that 'the current price movements are likely part of a range trading phase, probably between 0.6450 and 0.6555.' Our view remains unchanged."