The upside bias in AUD/USD is forecast to re-visit the 0.7335 level, and probably 0.7360, in the next weeks, suggested FX Strategists at UOB Group.
Key Quotes
24-hour view: “Our expectations for a weaker AUD last Friday was incorrect as it lifted off and soared to a high of 0.7317 during NY session. The rapid advance is clearly overbought but AUD could test 0.7335 first before a pullback can be expected. The next resistance at 0.7360 is not expected to come under threat. Support is at 0.7290 followed by 0.7270.”
Next 1-3 weeks: “Last Wednesday (25 Aug, spot at 0.7255), we highlighted that the rebound in AUD ‘could extend to the major resistance at 0.7305’. We added, ‘AUD has to close above this major resistance before a sustained advance can be expected’. As AUD struggled to extend its advance, we highlighted on Friday (27 Aug, spot at 0.7235) that ‘upward momentum is beginning to wane and a break of 0.7200 would indicate that the chance for AUD to close above 0.7305 has dissipated’. AUD subsequently dropped to 0.7222 before lifting off during NY session and surged to a high of 0.7317 (closed at 0.7310). Upward momentum has been boosted and AUD could advance further to 0.7335, possibly 0.7360. The current positive outlook is deemed intact as long as AUD does not move below 0.7235 (‘strong support’ level previously at 0.7200).”
