FX Strategists at UOB Group noted AUD/USD is seen surpassing the 0.6900 handle and even testing 0.6950 in the near term.
Key Quotes
24-hour view: “AUD traded sideways between 0.6859 and 0.6890 last Friday, narrower than our expected range of 0.6840/0.6890. The underlying tone has firmed somewhat and this could lead to a test of the strong 0.6910 resistance level. For today, a sustained rise above this level is not expected (next resistance is at 0.6930). Support is at 0.6860 followed by 0.6840″.
Next 1-3 weeks: “There is not much to add as AUD continues to trade sideways at these higher levels. We continue to see chance for AUD to test 0.6910 but as highlighted in recent updates, a ‘pause’ at these overbought levels would increase the risk for a short-term top. For now, only a break of 0.6825 (no change in strong support level) would indicate that the rebound that started earlier this month has run its course”.
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