AUD/USD is now focused on 0.74 and beyond – UOB

In light of FX Strategist at UOB Group, AUD/USD could attempt a move above the 0.74 mark in the short-term horizon.

Key Quotes

24-hour view: “While we expected AUD to strengthen last Friday, we were of the view that ‘sustained rise above 0.7300 is not expected’. The ease by which AUD blast past 0.7300 and the subsequent surge to 0.7367 came as a surprise. From here, there is room for AUD to take a ‘sniff’ at 0.7400 but a sustained advance above this level appears unlikely (next resistance is at 0.7430). Support is at 0.7330 followed by 0.7300.”

Next 1-3 weeks: “We highlighted the improvement in upward momentum last Thursday (27 Aug, spot at 0.7240) but held the view that AUD ‘has to close above 0.7300 before a sustained advance can expected’. We did not quite anticipate the sudden surge in AUD that sent it rocketing to a high of 0.7367 last Friday. In view of the vastly improved momentum, AUD could advance further towards 0.7430 even though 0.7400 is a relatively strong level. Overall, AUD is expected to trade on positive note as long as it holds above the ‘strong support’ level at 0.7270 (level was previously at 0.7140).”