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A breakdown of 0.7330 would indicate that the positive phase in AUD/USD could be over, in opinion of FX Strategists at UOB Group.

Key Quotes

24-hour view: “Yesterday, we held the view that ‘there is room for AUD to test 0.7330 first before the current weakness should stabilize’. However, AUD rebounded after touching a low of 0.7339. Upward momentum is beginning to pick-up, albeit tentatively for now. From here, AUD could move higher but in view of the less than robust momentum, AUD is unlikely to break the year-to-date high at 0.7413 (minor resistance is at 0.7400). Support is at 0.7350 followed by the still rather strong support of 0.7330.”

Next 1-3 weeks: “We highlighted yesterday that a break of 0.7413 would shift the focus to 0.7455. However, AUD retreated quickly from high of 0.7408. Upward momentum has been dented and a break of 0.7330 (no change in ‘strong support’ level) would indicate that the positive phase that started in mid-November (see annotations in the chart below) has run its course. Barring a sudden surge above 0.7413 within these 1 to 2 days, a break of 0.7330 would not be surprising.”