AUD/USD could attempt a break above the prevailing 0.6800/0.7010 in the next weeks, noted FX Strategists at UOB Group.
24-hour view: “Our view for AUD yesterday was that it ‘could continue to edge higher but the major resistance at 0.7010 is unlikely to come into the picture’. While 0.7010 remains intact, the subsequent sharp pull-back from a high of 0.6998 was not exactly expected. Upward momentum has dissipated and the current movement is viewed as part of a consolidation phase. In other words, AUD is expected to trade sideways for today, likely between 0.6920 and 0.6985.”
Next 1-3 weeks: “AUD closed on a relatively firm note yesterday (0.6974, +0.42%) and upward momentum is beginning to improve. However, it is too early to expect the start of a sustained advance. From here, AUD has to close above the top of our expected sideway-trading range of 0.6800/0.7010 before a move towards the June’s top at 0.7067 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 holds above 0.6900 within these few days.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.