AUD/USD is expected to advance further and surpass the key 0.7900 hurdle in the next weeks, suggested FX Strategists at UOB Group.
Key Quotes
24-hour view: “Our expectation for AUD to ‘trade within a range’ last Friday was wrong as it rocketed to 0.7877 before extending its gains after opening today. Further AUD strength is not ruled out but severely overbought conditions suggest that a sustained advance above 0.7920 is unlikely. Support is at 0.7855 followed by 0.7825.”
Next 1-3 weeks: “We have held a positive view in AUD for about 2 weeks now. In our latest narrative from last Friday (19 Feb, spot at 0.7770), we held the view that ‘while the outlook for AUD is still positive, barring a sudden surge in momentum, AUD is likely to struggle to move clearly above the solid resistance zone between 0.7805 and 0.7920’. However, AUD subsequently rocketed higher and posted its biggest 1-day gain in about 7 weeks (0.7868, +1.27%). The strong boost in momentum is expected to lead to further AUD strength. The next resistance is at 0.7960 followed by the ‘round number’ resistance of 0.8000. On the downside, a break of 0.7770 (‘strong support’ level was at 0.7720 last Friday) would indicate that the positive phase in AUD has run its course.”
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