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FX Strategists at UOB Group noted the pair could face further upside on a breakout of the 0.7530 region.

Key Quotes

24-hour view: “We expected a lower AUD yesterday but were of the view that any “weakness is likely limited to 0.7345″. While AUD touched a low of 0.7359, the subsequent robust recovery was not expected. The rebound appears to have enough momentum to extend higher to 0.7455 but at this stage, a clear break above this level seems unlikely (next resistance is at 0.7485). Support is at 0.7400 followed by 0.7375. The low near 0.7360 is likely ‘safe’ for now”.

Next 1-3 weeks: “AUD traded sideways over the past few days and there are no further clues. We continue to hold the view that AUD is trying to form a base even though only a break of 0.7530 would indicate the start of a sustained up-move. Meanwhile, we expect AUD to trade sideways and after testing the bottom of the expected 0.7360/0.7485 consolidation range yesterday (low of 0.7359), the top of the range at 0.7485 would likely be probed next. At this stage, the odds for a clear break above 0.7485 are not high but a breach of this level would greatly increase the prospect for a move to the critical 0.7530 resistance”.