Australian Dollar (AUD) is expected to consolidate in a range between 0.6625 and 0.6665. 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 AUD

24-HOUR VIEW: "AUD staged a sharp rise that reached a high of 0.6665 last Thursday. On Friday, we noted that 'strong momentum indicates likely further strengthening of AUD, but overbought conditions suggest that 0.6700 is likely out of reach for now.' However, instead of strengthening further, AUD traded in a range of 0.6631/0.6668 before settling at 0.6648 (-0.20%). AUD appears to have entered a consolidation phase. Today, we expect AUD to trade in a range between 0.6625 and 0.6665."

1-3 WEEKS VIEW: "We continue to hold the same view as last Friday (12 Sep, spot at 0.6665). As highlighted, the recent 'price action continues to suggest a higher AUD, and the next level to watch above 0.6670 is 0.6700.' Overall, only a breach of 0.6590 (no change in ‘strong support’ level) would indicate that the AUD strength from early last week (see annotations in chart below) has run its course."