AUD/USD could extend gains to the 0.7430 area in the next weeks, suggested FX Strategists at UOB Group.
24-hour view: “We highlighted yesterday that ‘while the advance over the past couple of days appears to be struggling to maintain its momentum, it is too soon to expect a sustained pullback’. We added, AUD ‘could grind higher but a break of the major resistance at 0.7430 appears unlikely’. Our expectation was not wrong as AUD rose to 0.7413 before easing off to trade mostly sideways. The current movement is viewed as part of a consolidation phase and for today; AUD is expected to trade between 0.7335 and 0.7405.”
Next 1-3 weeks: “There is not much to add to our update from Monday (31 Aug, spot at 0.7360). As highlighted, AUD ‘could advance further to 0.7430’. That said, upward momentum has not improved by much but for now, we continue to hold the same view. Looking forward, if AUD breaks above 0.7430, the next level to focus on is at 0.7480. On the downside, a breach of 0.7300 (‘strong support’ level previously at 0.7270) would indicate the current AUD strength has run its course.”
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