AUD/USD: Outlook remains positive above 0.7765 – UOB

In opinion of FX Strategists at UOB Group, further gains in AUD/USD are likely while above the 0.7765 level.

Key Quotes

24-hour view: “Our expectation for the ‘pullback in AUD to extend lower’ did not materialize as it traded in a relatively quiet manner between 0.7820 and 0.7857. Momentum indicators are mostly neutral and AUD is likely to consolidate within a 0.7800/0.7855 range.”

Next 1-3 weeks: “We continue to hold the same view as yesterday (11 May, spot at 0.7835). As highlighted, the current AUD strength is deemed intact as long as it does breach 0.7765 (no change in ‘strong support’ level). Meanwhile, overbought shorter-term conditions could lead to a couple of days of consolidation first.”