Anna 
UOB Group’s market strategist, Quek Ser Leang, and senior forex strategist, Peter Chia, anticipate that the AUD/USD may continue its current upward momentum in the short term, targeting the 0.6550 region.
24-hour perspective: Last Friday, we suggested that “the Australian Dollar may have space for a retest of 0.6455 before a decline.” We pointed out that “0.6500 is unlikely to be touched.” The Australian Dollar’s uptrend exceeded our expectations as it soared during the New York trading session, breaking through 0.6455 and 0.6500 (with a peak at 0.6518). While there is room for further Australian Dollar strength, overbought conditions suggest that any upside is unlikely to significantly break 0.6555. Please note that 0.6525 represents another strong resistance level. On the downside, if the Australian Dollar falls below 0.6450 (minor support at 0.6485), it indicates that the Australian Dollar’s rebound is preparing for a breather.
1-3 weeks ahead: Last Thursday (November 2, with a spot price of 0.6415), we noted that while the upward momentum had improved, the Australian Dollar would need to break and hold above 0.6445 to make further gains towards 0.6500. On Friday (November 3, with a spot price of 0.6425), we pointed out, “While there appears to be sufficient momentum suggesting that the Australian Dollar may rise in the coming days, it may take some time before the major resistance level of 0.6500 comes into play. We clearly did not anticipate the Australian Dollar’s surge during New York trading, breaking through 0.6500 (with a peak at 0.6518). The price action indicates that the Australian Dollar is likely to surpass 0.6525 and head towards another strong resistance level at 0.6555. To maintain momentum, the Australian Dollar must stay above 0.6425 (last Friday’s ‘strong resistance level’ was 0.6340). In the short term, 0.6450 is already a solid support level.
