In opinion of FX Strategists at UOB Group, AUD/USD is seen gaining extra momentum on a close above 0.7350.
Key Quotes
24-hour view: “We highlighted yesterday that ‘the bias is tilted to the downside but any weakness is likely limited to a test of the 0.7235 support’. However, AUD rebounded strongly after touching a low of 0.7254 before extending its gains earlier this morning. Upward momentum is beginning to improve and AUD could edge above the major resistance at 0.7350. That said, a sustained advance above this level is unlikely (next resistance is at 0.7375). Support is at 0.7300 followed by 0.7275.”
Next 1-3 weeks: “We have held the same view since last Friday (11 Sep, spot at 0.7265) wherein AUD ‘is in a consolidation phase and could trade between 0.7200 and 0.7350 for some time’. After a week, upward momentum is showing tentative sign of picking up. While a move above 0.7350 would not be surprising, AUD has to close above this major resistance before further gains towards 0.7400 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 does not move below 0.7250 within these few days.”
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