FX Strategists see AUD/USD extending the upside on a breakout of 0.6230. AUD subsequently surged to 0.6208 before retreating. The rapid advance over the past couple of days is deep in overbought territory and for today, further AUD strength is unlikely. From here, AUD is more likely to consolidate and trade between 0.6070 and 0.6200.

While AUD edged above the top of our expected 0.5900/0.6200 range yesterday (high of 0.6208), it is premature to expect a sustained advance. That said, after two straight days of strong gains, upward momentum has improved. However, AUD has to register a NY closing above 0.6230 before further advance can be expected. At this stage, the prospect for such a scenario is not high but it would continue to increase if AUD does not move below 0.6030 within these few days.