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The upside momentum in AUD/USD appears somewhat mitigated but the pair could still re-test the mid-0.7400s in the near-term, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “AUD traded in a relatively quiet manner between 0.7410 and 0.7446 last Friday. Momentum indicators are most neutral and AUD is likely trade sideways for today, expected to be within a 0.7405/0.7455 range.”

Next 1-3 weeks: “The positive phase in AUD that started about 3 weeks ago is still intact. In our latest update from last Thursday (03 Dec, spot at 0.7410), we indicated that ‘the positive phase in AUD has likely moved into its next up-leg’ and that ‘the next resistance is at 0.7455 followed by 0.7500’. While AUD subsequently rose to a high of 0.7449, it has not been able to make much headway. Upward momentum has slowed somewhat but as long as 0.7365 is intact (‘strong support’ level previously at 0.7330), we continue to see chance for AUD to push above 0.7455 (next resistance is at 0.7500).”