AUD/USD: The continuation of the uptrend needs to break above 0.6850 – UOB

A potential move to 0.6915 remains on the cards once AUD/USD clears 0.6850, suggest Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia at UOB Group.

Key Quotes

24-hour view: “We expected AUD to ‘trade between 0.6765 and 0.6845’ last Friday. AUD subsequently dropped to 0.6743 before rebounding quickly. We view the price movements as part of a consolidation and expect AUD to trade within a range of 0.6760/0.6850 today.”

Next 1-3 weeks: “There is not much to add to our update from last Friday (02 Dec, spot at 0.6800). As highlighted, while further AUD strength is not ruled out, it has to break clearly above 0.6850 before an advance to 0.6915 is likely. The likelihood of a clear break of 0.6850 would remain intact as long as AUD does not move below 0.6730 (no change in ‘strong support’ level from last Friday).”