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The Aussie dollar could edge higher to the 0.72 region vs. the greenback in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “We highlighted yesterday that ‘we continue to see chance for AUD to test the 0.7125 support’ and added, ‘however, in view of the lackluster momentum, the next support at 0.7095 is not expected to come into the picture’. AUD subsequently dipped to 0.7109 before staging a surprising robust rebound. The recovery has scope to move nearer to 0.7200. For today, the next resistance at 0.7225 is likely out of reach. Support is at 0.7155 followed by 0.7130. The low of 0.7109 is expected to be ‘safe’ for today.”

Next 1-3 weeks: “There is not much to add to our update from Tuesday (11 Aug, spot at 0.7150). As highlighted, AUD is deemed to have moved into a consolidation phase. For these couple of weeks, AUD is expected to trade between 0.7050 and 0.7250.”