The Australian Dollar (AUD) is likely to trade in a sideways range of 0.6750/0.6790. In mid-term, outsized advance suggests further AUD strength; given the overbought conditions, it remains to be seen if 0.6870 is within reach, UOB Group FX strategists Quek Ser Leang and Lee Sue Ann note.

A move towards 0.6870 is possible mid-term

24-HOUR VIEW: “After AUD surged last Friday, we indicated yesterday that “conditions are severely overbought, but there appears to be enough momentum to break clearly above 0.6800.” Our view did not materialise, as AUD traded in a sideways range of 0.6768/0.6798, closing at 0.6772 (- 0.38%). Momentum indicators are turning neutral, and further sideways trading seems likely. Expected range for today: 0.6750/0.6790.”