The Aussie Dollar could advance to the 0.7500 region in the next weeks, according to FX Strategists at UOB Group.
Key Quotes
24-hour view: “Instead of trading sideways (as expected last Friday), AUD surged to hit a 2-week high of 0.7444. The rally appears to have scope to extend further but at this stage, a clear break of the next major resistance at 0.7475/80 seems unlikely. Support is at 0.7410 followed by 0.7390″.
Next 1-3 weeks: “We turned neutral last Thursday (05 Jul, spot at 0.7380) and expected AUD to trade sideways within a 0.7320/0.7450 consolidation range. The rapid pace of which it approaches the top of the expected range (high of 0.7444 last Friday) suggests the undertone has improved. From here, there is scope for AUD to stage a stronger rebound to 0.7500. At this stage, the prospect for a clear break of this level is not high but it would continue to improve as long as the ‘key support at 0.7370’ is intact”.
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