There is room for Australian Dollar (AUD) to pull back further, but any decline is likely part of a range between 0.6530 and 0.6575. In the longer run, there is a chance for AUD to rise toward the resistance at 0.6595, but it is unlikely to break clearly above this level, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Unlikely to break clearly above 0.6595

24-HOUR VIEW: "While AUD soared to a high of 0.6589 last Friday, it retreated quickly to close at 0.6555, up by 0.56%. The sharp rise appears excessive, and AUD is unlikely to rise further. Today, there is room for AUD to pull back further, but any decline is likely part of a range between 0.6530 and 0.6575. In other words, AUD is unlikely to break clearly below 0.6530 or above 0.6575."

1-3 WEEKS VIEW: "Our latest update was from last Wednesday (03 Sep, spot at 0.6515), in which we indicated that 'there has been an increase in downward momentum, but it is not sufficient to suggest a sustained decline.' We expected AUD to 'trade in a range, most likely between 0.6460 and 0.6560.' AUD traded within the range until last Friday, when it rose to a high of 0.6589. Although upward momentum has not increased significantly, there is a chance for AUD to rise toward the resistance at 0.6595. Based on the current momentum, AUD is unlikely to break clearly above this level. On the downside, if AUD breaks below 0.6515 (‘strong support’ level), it would mean that AUD is more likely trading in a range, rather than rising toward 0.6595."