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The upside momentum in AUD/USD now targets the 0.7345 level in the near-term, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “We expected AUD to weaken yesterday but we were of the view that ‘any decline is unlikely to break the strong support at 0.7245’. Our view was not wrong as AUD recovered after touching a low of 0.7255. Downward pressure has eased somewhat and AUD is unlikely to weaken much further. Overall, AUD is likely to consolidate and trade between 0.7245 and 0.7305.”

Next 1-3 weeks: “We highlighted two days ago (17 Nov, spot at 0.7320) that AUD ‘is expected to trade with an upward bias to 0.7380’. Since then, AUD has not been able to clear the resistance at 0.7345. Upward momentum has eased and AUD the odds for further AUD strength have diminished and would continue to diminish unless AUD breaks 0.7345 within these 1 to 2 days. Conversely, a break of 0.7245 (no change in ‘strong support’ level) would indicate that AUD is not ready for 0.7380 just yet.”