Australian Dollar (AUD) could rise above 0.6540; it is unlikely to reach the next resistance at 0.6555. In the longer run, AUD is slightly positive, and it is likely to edge higher to 0.6555, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

AUD is slightly positive

24-HOUR VIEW: "When AUD was at 0.6505 in the early Asian trade yesterday, we noted that 'there has been a tentative buildup in upward momentum.' We highlighted that 'there is a chance for AUD to rise, but based on the current momentum, it might not be able to reach the major resistance at 0.6540.' Our assessments turned out to be correct, as AUD rose but did not reach 0.6540 (high of 0.6538). Upward momentum has increased, but not significantly. Today, AUD could rise above 0.6540, but this time around, it is unlikely to reach the next resistance at 0.6555. Support is at 0.6515; a breach of 0.6505 would indicate that AUD is not rising further."

1-3 WEEKS VIEW: "The following are from our update yesterday: 'After AUD rose sharply last Friday, we highlighted on Monday (25 Aug, spot at 0.6485) that 'there has been an increase in upward momentum, but not significantly, and this is likely to lead to a higher range of 0.6440/0.6540 rather than a sustained advance.' Although upward momentum has increased further, it is not sufficient to suggest that AUD is ready to break above 0.6540 just yet. In other words, we continue to hold the same view.” AUD subsequently rose to a high of 0.6538, and upward momentum continued to increase, albeit not significantly. That said, we are revising our view to slightly positive, and we now expect AUD to edge higher toward 0.6555. We will maintain our view as long as AUD holds above the ‘strong support’ level, now at 0.6485."