There is a chance for Australian Dollar (AUD) to test 0.6670; the major support at 0.6655 is not expected to come into view. In the longer run, the current price movements are likely part of a range-trading phase between 0.6655 and 0.6745, 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: "AUD rose to a high of 0.6722 two days ago. Yesterday, when it was at 0.6705, we noted that 'the increase in upward momentum is not strong enough to suggest a continued rise'. We held the view that AUD “is more likely to trade in a higher range of 0.6685/0.6730'. During the NY session, AUD fluctuated between 0.6673 and 0.6727, closing on a soft note at 0.6681 (-0.43%). This time around, the increase in downward momentum is not sufficient to indicate a sustained decline. That said, there is a chance for AUD to test 0.6670. The major support at 0.6655 is not expected to come into view. Resistance is at 0.6700, followed by 0.6715."

1-3 WEEKS VIEW: "In our latest narrative from last Friday (09 Jan, spot at 0.6700), we highlighted that 'the current price movements are likely part of a range trading phase between 0.6655 and 0.6745'. Our view remains unchanged."