Following the recent price action, the Aussie Dollar is expected to move to the 0.6950 area vs. the Greenback in the next weeks, suggested FX Strategists at UOB Group.
24-hour view: “AUD surged and touched a 3-month high of 0.6929 before retreating quickly to end lower at 0.6894 (-0.13%). Upward momentum has dissipated and 0.6929 is viewed as an interim top. For today, AUD is likely to trade sideways to slightly lower, expected to be between 0.6865 and 0.6920”.
Next 1-3 weeks: “While AUD cracked the 0.6900 resistance yesterday (high of 0.6930), it dropped back quickly and ended the day just below 0.6900 (NY close of 0.6895, -0.13%). While the daily closing is on the soft side, the price action suggests AUD is likely to trade with an upside bias towards 0.6950. That said, ‘hesitant’ upward momentum suggests that the prospect for a sustained break above 0.6950 (next resistance is at 0.6970) is not high for now. On the downside, a move below 0.6835 (‘strong support’ level) would indicate that our view is wrong”.