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”.
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