In opinion of FX Strategists at UOB Group, further upside could see AUD/USD re-visiting the 0.7360 region in the next weeks.
Key Quotes
24-hour view: “Yesterday, we held the view that AUD ‘could test 0.7335 first before a pullback can be expected’. However, AUD eased off from a high of 0.7319 and subsequently traded mostly sideways. Momentum indicators are mostly neutral and AUD could continue to trade sideways. Expected range for today, 0.7275/0.7310.”
Next 1-3 weeks: “We highlighted yesterday (30 Aug, spot at 0.7310) that after the strong advance last Friday (27 Aug), upward momentum has been boosted and AUD could advance further to 0.7335, possibly 0.7360. There is no change in our view even though after yesterday’s relatively quiet price actions, shorter-term momentum appears to have decelerated somewhat. All in, the current AUD strength that started about a week ago (see annotations the chart below) is deemed intact as long as AUD does not move below 0.7235 (no change in ‘strong support’ level from yesterday).”
