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In view of FX Strategists at UOB Group, further pullbacks in the pair seems unlikely in the next weeks.

Key Quotes

24-hour view: “After trading sideways for most of last Friday, AUD burst higher during late NY hours and hit a high of 0.7319. The up-move appears to be running ahead of itself but with no sign of weakness just yet, there is scope for AUD to test the major 0.7330 resistance. At this stage, a sustained move above this level is not expected (next resistance is at 0.7350). Support is at 0.7285 but the stronger level is at 0.7255″.

Next 1-3 weeks: “We highlighted last Thursday (16 Aug, spot at 0.7235) “the immediate target was exceeded” and oversold short-term indicators could lead to a “few days of consolidation first”. The subsequent strong rebound in AUD that hit a high of 0.7319 during late NY hours on Friday came as a surprise. A break of the 0.7330 ‘stop-loss’ for our bearish view would indicate that AUD has made a short-term low at 0.7203 last week. This scenario appears likely unless can AUD can move and stay below 0.7255 within these couple of days”.