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In opinion of FX Strategists at UOB Group, AUD/USD could move higher and break above the ley barrier at 0.69 the figure in the next weeks.

Key Quotes

24-hour view: “Despite overbought conditions, AUD extended its winning run and closed sharply higher for the third straight day (+0.49%, 0.6849). From here, there is scope for AUD to move above last Friday’s 0.6862 peak but overbought conditions could ‘limit’ gains to 0.6880. Support is at 0.6820 followed by 0.6800″.

Next 1-3 weeks: “We indicated 2 days ago (04 Sep, spot at 0.6760) that there “appears to be ample scope for the rebound in AUD to test the strong 0.6825 resistance”. We added, “if AUD were to register a NY close above 0.6850, it would indicate that last month’s low of 0.6678 is a more significant bottom than currently expected”. Our expectation was not wrong as AUD touched 0.6830 yesterday (05 Sep). From here, a NY close above 0.6850 would suggest AUD is ready to tackle 0.6910, even 0.6950. On the downside, only a move below 0.6760 would suggest that the current upward pressure has eased”.