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AUD/USD could accelerate its upside once 0.6600 is cleared, in opinion of FX Strategists at UOB Group.

Key Quotes

24-hour view: “We highlighted yesterday that AUD ‘could edge above the major 0.6570 level’ but added, ‘in view of the overbought conditions, AUD may not be able to maintain a toe-hold above this level’. AUD subsequently popped to a high of 0.6585 before retreating quickly. Upward momentum has eased and further AUD strength appears unlikely. For today, AUD is more likely to consolidate and trade between 0.6515 and 0.6580.”

Next 1-3 weeks: “AUD is currently approaching the top our expected 0.6370/0.6570 range (first highlighted last Wednesday, 13 May). While the outsized gain of +1.69% yesterday (18 May) has resulted in a rapid pick-up in momentum, there are a couple of strong resistance levels that AUD need to clear before a sustained advance can be expected. From here, a break of the top of the range at 0.6570 would not be surprising but AUD has to post a daily closing above 0.6600 in order to indicate that it has enough momentum to continue to move higher in the coming days. Overall, the outlook for AUD is viewed as mildly positive for now as long as it does not move below 0.6440 within these few days.”