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There is scope for AUD/USD to advance beyond 0.7450 in the next weeks, in opinion of FX Strategists at UOB Group.

Key Quotes

24-hour view: “AUD traded between 0.7354 and 0.7399 last Friday, higher than our expected range of 0.7335/0.7380. Upward momentum has improved, albeit not by all that much. From here, AUD could edge above the year-to-date high at 0.7413 but the next resistance at 0.7455 is unlikely to come into the picture. Support is at 0.7375 followed by 0.7360.”

Next 1-3 weeks: “The positive phase in AUD that started more than 2 weeks ago is still intact. Our latest narrative was from last Wednesday (25 Nov, spot at 0.7370) wherein AUD ‘is ready to tackle the year-to-date high at 0.7413’ and that ‘a daily closing above this level could lead to further advance towards 0.7455’. Shorter-term momentum has improved and a break of 0.7413 would shift the focus to 0.7455. All in, only a break of 0.7330 (‘strong support’ level previously at 0.7285) would indicate that the positive phase in AUD has run its course.”