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AUD/USD is seen advancing further and could re-test the 0.7785 level in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “We expected AUD to ‘strengthen further’ yesterday. We highlighted that ‘the major resistance at 0.7785 is likely out of reach and that 0.7760 is already quite a strong level’. Our view was not wrong as the advance in AUD stalled at 0.7761. While conditions remain overbought and momentum is beginning to wane, there is scope for AUD to make another push higher towards 0.7785. For today, a clear break of this level is unlikely. On the downside, a break of 0.7715 would indicate that the current upward pressure has eased.”

Next 1-3 weeks: “We continue to hold the same view from yesterday (15 Apr, spot at 0.7730). As highlighted, ‘risk is for a higher AUD towards 0.7785’. Shorter-term overbought conditions suggest that AUD may struggle to break 0.7785 within these few days. Looking ahead, the next resistance is at 0.7820. A break of 0.7670 (‘strong support’ level was at 0.7645 yesterday) would indicate that the upside risk has dissipated.”