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AUD/USD could attempt a break above the prevailing 0.6800/0.7010 in the next weeks, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our view for AUD yesterday was that it ‘could continue to edge higher but the major resistance at 0.7010 is unlikely to come into the picture’. While 0.7010 remains intact, the subsequent sharp pull-back from a high of 0.6998 was not exactly expected. Upward momentum has dissipated and the current movement is viewed as part of a consolidation phase. In other words, AUD is expected to trade sideways for today, likely between 0.6920 and 0.6985.”

Next 1-3 weeks: “AUD closed on a relatively firm note yesterday (0.6974, +0.42%) and upward momentum is beginning to improve. However, it is too early to expect the start of a sustained advance. From here, AUD has to close above the top of our expected sideway-trading range of 0.6800/0.7010 before a move towards the June’s top at 0.7067 can be expected. At this stage, the prospect for such a move is not high but it would continue to increase as long as AUD holds above 0.6900 within these few days.”