AUD/USD bullish above 0.8040 – UOB

FX Strategists at UOB Group noted the outlook on spot should turn to bullish on a daily close above 0.8040.

Key Quotes

24-hour view: “Against our expectation, AUD eased off from a high of 0.8021 and the major 0.8040 level was unchallenged. However, the quick rebound from an overnight low of 0.7963 is gaining momentum slowly and a move towards 0.8040 would not be surprising. That said, a sustained break above this level is not expected for now (next resistance is at 0.8065). Support is at 0.7985 but only a move back below 0.7960 would indicate that the current mild upward pressure has eased”.

Next 1-3 weeks: “While the neutral phase that started about 3 weeks ago is still intact, the upside risk has increased with the strong up-move yesterday. From here, a NY closing above 0.8040 would indicate that AUD has moved into a bullish phase (with an immediate target of 0.8120). While the prospect for such a move are not high at this stage, it would continue to improve as long as AUD can hold above 0.7940 in the coming days”.