Australian Dollar (AUD) is most likely to trade in a range between 0.6535 and 0.6595. In the longer run, current price movements are likely part of a range trading phase; firm underlying tone suggests AUD could trade in a higher range of 0.6515/0.6415, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Current price movements are likely part of a range trading phase

24-HOUR VIEW: "We did not expect AUD to rise sharply to 0.6591 (we were expecting consolidation). Although AUD closed at 0.6589, it fell sharply after the close. The buildup in momentum has faded. Today, we expect AUD to trade in a range, most likely between 0.6535 and 0.6595."

1-3 WEEKS VIEW: "On Tuesday (08 Jul, spot at 0.6515), we noted that 'downward momentum is starting to build.' We expected AUD 'to edge lower toward 0.6460.' AUD then traded in a quiet manner for a couple of days. Yesterday, 11 Jul, when AUD was at 0.6535, we stated that 'although the momentum buildup appears to be fading, only a breach of 0.6585 (‘strong resistance’ level) would mean AUD is likely to range trade instead of edging lower.' AUD then rose above 0.6585 and reached a high of 0.6591. While the current price movements are likely part of a range trading phase, the firm underlying tone suggests AUD could trade in a higher range of 0.6515/0.6415 from here."