The current price movements are likely part of a range-trading phase between 0.6510 and 0.6540. In the longer run, AUD is likely to edge higher within a higher range of 0.6490/0.6580, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

AUD might edge higher within a higher range

24-HOUR VIEW: "AUD rose sharply to a high of 0.6540 two days ago. Yesterday, when AUD was at 0.6535, we highlighted the following: 'Further AUD strength is not ruled out, but the rapid rise appears excessive, and any advance is likely limited to a test of 0.6560'. Our view did not materialize, as AUD traded within a relatively tight range of 0.6516/0.6538. The price movements are likely part of a range-trading phase. Today, we expect AUD to trade between 0.6510 and 0.6540."

1-3 WEEKS VIEW: "Our update from yesterday (11 Nov, spot at 0.6535) remains valid. As highlighted, we expect AUD to edge higher, but we view any advance as part of a higher range of 0.6490/0.6580."