Australian Dollar (AUD) could continue to strengthen but is unlikely to be able to break above 0.6630 today. In the longer run, the price action continues to suggest AUD strength; the next level to watch is 0.6630, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Price action continues to suggest AUD strength

24-HOUR VIEW: "We expected AUD to 'edge higher to 0.6575' yesterday. However, we stated that 'we do not expect the next resistance at 0.6595 to come under threat.' Our view of a higher AUD was not wrong, even though it rose more than expected to a high of 0.6591. AUD closed at 0.6586 but rose further today. The rapid rise appears to be overdone, but AUD could continue to strengthen. That said, it is unlikely to be able to break above 0.6630 today. Note that there is a minor resistance at 0.6615. Support levels are at 0.6585 and 0.6570."

1-3 WEEKS VIEW: "Yesterday (28 Oct, spot at 0.6555), we turned positive on AUD. We indicated that AUD 'could edge higher to 0.6575, with lesser odds of reaching 0.6595.' We did not quite expect AUD to rise quickly to a high of 0.6591 in the late NY session. AUD rose further in the early Asian session today. The price action continues to suggest AUD strength. The next level to watch is 0.6630. We will maintain our positive view as long as 0.6535 (‘strong support’ level was at 0.6515 yesterday) holds."