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The upside momentum in AUD/USD could extend further north of the 0.7000 mark in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our expectation for AUD to consolidate yesterday was incorrect as it surged to a high of 0.6987 before dropping back quickly. Upward momentum is showing sign of ‘tiring’ and while AUD could advance nearer to the 0.7000 resistance, a sustained move above this level is unlikely for today (next resistance is at 0.7030). Support is at 0.6900 followed by 0.6870.”

Next 1-3 weeks: “There is not much to add to the update from Wednesday (03 Jun, spot at 0.6930). As highlighted, the outlook for AUD ‘is still clearly positive and the next resistance is at 0.7000 followed by 0.7030’. AUD touched 0.6987 yesterday (04 Jun) and while the 0.7000 level appears to be within reach, overbought conditions suggest that 0.7030 may not come into the picture so soon. Overall, the positive phase that started more than 2 weeks ago is deemed as intact as long as 0.6830 is not breached (‘strong support’ level was previously at 0.6800).”