AUD/USD looks ready to break above 0.7400 – UOB

In opinion of FX Strategists at UOB Group, AUD/USD is now seen retaking the 0.7400 hurdle and above in the next weeks.

Key Quotes

24-hour view: “Our expectation for AUD to ‘consolidate within a 0.7260/0.7330 range’ yesterday was wrong as it soared to a high of 0.7368, dropped back down to an overnight low of 0.7312 before snapping back up to end the day on a strong note at 0.7361 (+1.02%). Despite the relatively choppy price actions, upward momentum appears to be strong and AUD is expected to move higher even though the year-todate high at 0.7413 is likely out of reach (there is a minor resistance at 0.7400). On the downside, a breach of 0.7320 would indicate the current upward pressure has eased (minor support is at 0.7340).”

Next 1-3 weeks: “We highlighted yesterday (24 Nov, spot at 0.7295) that ‘unless AUD ‘punches’ above 0.7345 within these 1 to 2 days, a break of 0.7245 would not be surprising and would indicate that AUD could trade sideways for a while’. AUD subsequently cracked 0.7345 (high of 0.7368) and it appears that AUD is ready to tackle the year-to-date high at 0.7413. A daily closing above 0.7413 would be a rather strong signal that AUD could continue to advance in the coming days (next resistance is at 0.7455). All in, the current positive outlook for AUD is deemed as intact unless it moves below 0.7285 (‘strong support’ level was at 0.7245 yesterday).”