AUD/USD: Extra gains on the cards above 0.7350 – UOB

Gains in AUD/USD are expected to pick up pace on a breakout of 0.7350, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our expectation for AUD to ‘edge above the major resistance at 0.7350’ did not materialize as it traded between 0.7283 and 0.7334 before settling slightly lower at 0.7290 (-0.30%). Momentum indicators are neutral and AUD is likely to consolidate and trade sideways for today, albeit at a lower range of 0.7275/0.7325.”

Next 1-3 weeks: “We have held the same view since last Friday (11 Sep, spot at 0.7265) wherein AUD ‘is in a consolidation phase and could trade between 0.7200 and 0.7350 for some time’. After a week, upward momentum is showing tentative sign of picking up. While a move above 0.7350 would not be surprising, AUD has to close above this major resistance before further gains towards 0.7400 can be expected. At this stage, the prospect for such a move is not high but it would continue to increase as long as AUD does not move below 0.7250 within these few days.”