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The Aussie dollar could reach the psychological 0.7000 mark vs. its American peer in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “The pace of the rally in AUD continues to surprise us as it blast past our ‘likely out of reach level of 0.6860’ and hit a high of 0.6899 yesterday. The strong price action this morning suggests AUD could repeat its performance even though the next resistance at 0.7000 could be a bridge too far for today. On the downside, 0.6880 is likely strong enough to hold for now.”

Next 1-3 weeks: “We highlighted yesterday (02 Jun, spot at 0.6795) that the ‘positive phase in AUD has entered the next up-leg’ but indicated ‘it is left to be seen if AUD can maintain the pace of its current rally’. We added, ‘a move towards 0.6860 would not be surprising and that the next resistance is at 0.6900’. AUD subsequently blast past 0.6860 and at the time or writing, just surged above 0.6900. The outlook is still clearly positive and the next resistance level is at 0.7000 followed by 0.7030. On the downside, the ‘strong support’ level has also ‘rallied’ to 0.6800 from yesterday’s level of 0.6680.”