In opinion of FX Strategists at UOB Group, AUD/USD could edge higher and visit the 0.7380 region in the near-term.
Key Quotes
24-hour view: “Yesterday, we held the view that AUD ‘could break the strong resistance at 0.7345 but 0.7380 is likely out of reach’. Our expectation did not materialize as AUD fell back sharply after touching a high of 0.7340. Upward pressure has dissipated and the risk has shifted to the downside. That said, any decline is unlikely to break the strong support at 0.7245 (minor support is at 0.7270). Resistance is at 0.7310 followed by 0.7330.”
Next 1-3 weeks: “We highlighted yesterday that ‘the rapid improvement in momentum suggests that the strong 0.7345 resistance is unlikely able to cap the advance in AUD’ and we expected AUD to ‘trade with an upward bias towards 0.7380’. AUD subsequently rose to a high of 0.7340 before dropping sharply. For now, there is no change in our view but a break of 0.7245 (no change in ‘strong support’ level) would indicate that AUD would need more time before pushing above 0.7345.”
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