FX Strategists at UOB Group see AUD/USD moving into a corrective upside with the likeliness of a move to 0.7700 in the next weeks.
Key Quotes
24-hour view: “Our expectation for AUD to ‘strengthen further’ did not materialize as it dropped to 0.7606 before snapping back up. Despite the relatively strong bounce from the low, upward momentum has not improved by much. However, there is room for AUD to edge upwards but the major resistance at 0.7700 is unlikely to come into the picture for now. Support is at 0.7640 followed by 0.7620.”
Next 1-3 weeks: “There is not much to add to our update from yesterday (06 Apr, spot at 0.7655). As highlighted, as long as 0.7590 (‘strong support’ level) is intact, the current movement is viewed as the early stages of a corrective rebound that could test the major resistance at 0.7700. While a breach of this resistance is not ruled out, AUD has to close above this level before a move towards the next resistance at 0.7745 can be expected.”
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