AUD/USD: Further advance likely beyond 0.6760 – UOB

Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group suggest AUD/USD needs to break above 0.6760 to allow for the continuation of the uptrend in the short term.

Key Quotes

24-hour view: “Yesterday, AUD rose to 0.6756 before pulling back to close the day the little changed at 0.6684 (-0.01%). The price actions appear to be part of a consolidation phase and today, AUD is likely to trade in a range of 0.6655/0.6720.”

Next 1-3 weeks: “Two days ago (22 Mar, spot at 0.6700), we stated that the rapid loss in momentum has diminished the odds for AUD to strengthen. There is no change in our view. From here, AUD must break and hold above 0.6760, or the chances of it advancing further will rapidly diminish. On the downside, a break of 0.6640 (no change in 'strong support' level) indicates that the AUD is more likely to trade in a broad consolidation range rather than strengthening.”