Australian Dollar (AUD) is likely to consolidate in a range of 0.6555/0.6595 against US Dollar (USD). In the longer run, short-term momentum has eased slightly; AUD may still move to 0.6645, but the odds are not high, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Short-term momentum has eased slightly

24-HOUR VIEW: "We noted last Friday that 'the current price movements are likely part of a consolidation phase between 0.6570/0.6615.' The subsequent price movements did not turn out as expected. AUD dropped to a low of 0.6552 and closed at 0.6565 (-0.39%). The price movements still appear to be part of a consolidation phase, probably in a range of 0.6555/0.6595."

1-3 WEEKS VIEW: "We adopted a positive AUD stance in the middle of last week. After AUD reached our prior technical objective at 0.6625 and pulled back, we pointed out Friday (25 Jul, spot at 0.6590) that 'while short-term momentum has eased slightly, AUD may still move to 0.6645, but the odds are not high.' We added, 'a break of 0.6545 (‘strong support’ level) would mean that 0.6645 is out of reach.' We continue to hold the same view."