AUD/USD firmer, now looks to 0.7010 – UOB

In opinion of FX Strategists at UOB Group, AUD/USD is expected to accelerate gains on a close above 0.7010.

Key Quotes

24-hour view: “We highlighted yesterday ‘upward momentum has eased and for today, AUD is likely to consolidate and trade sideways at these higher levels, expected to be within a 0.6960/0.7030 range’. While AUD traded sideways as expected, the registered range of 0.6965/0.7015 was narrower than anticipated. The underlying tone has weakened somewhat and this could lead to AUD edging lower to 0.6950. For today, the next support at 0.6920 is unlikely to come under threat. Resistance is at 0.7000 followed by 0.7015.”

Next 1-3 weeks: “AUD closed on a firm note at 0.6975 yesterday (+0.52%) and upward momentum is beginning to improve. From here, if AUD closes above 0.7010, it would indicate further AUD strength towards the June’s peak of 0.7067. At this stage, the prospect for such a scenario is quite high as long as AUD does not move below 0.6920 within these 1 to 2 days.”