Upside in AUD/USD faces resistance at 0.7350 – UOB

The upside bias in AUD/USD keeps gathering traction and is expected to meet the next hurdle at the 0.7350 level in the next weeks, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “We expected AUD to strengthen yesterday but we were of the view that ‘a clear break of 0.7300 is unlikely’. The subsequent AUD strength exceeded our expectations as it broke 0.7300 and rose to 0.7324. The rapid rise appears to be running ahead of itself and AUD is unlikely to strengthen much further. For today, AUD is likely to trade sideways, expected to be within 0.7285/0.7330 range.” 

Next 1-3 weeks: “On Monday (04 Oct, spot at 0.7275), we highlighted that AUD has likely moved into a consolidation phase and is expected to trade between 0.7210 and 0.7320. AUD edged above 0.7320 yesterday (07 Oct) and upward momentum is beginning to build. From here, AUD could edge higher but at this stage, any advance is likely limited to a test of 0.7350. On the downside, a break of the ‘strong support’ (currently at 0.7255) would indicate that the current mild upward pressure has eased.”