AUD/USD could still visit 0.7360 – UOB

In opinion of FX Strategists at UOB Group, there is still room for AUD/USD to reach the 0.7360 level in the next weeks.

Key Quotes

24-hour view: “We did not anticipate the sharp rise in AUD to 0.7341 and the subsequent rapid retreat from the high (we were expecting AUD to trade within a range of 0.7275/0.7310). Despite the advance, upward momentum has not improved by much. From here, AUD could retest the 0.7340 level but the major resistance at 0.7360 is unlikely to come under threat. Support is at 0.7300 followed by 0.7285.”

Next 1-3 weeks: “We have expected a stronger AUD since the middle of last week. In our latest narrative from Monday (30 Aug, spot at 0.7310), we highlighted that upward momentum has been boosted and AUD could advance further to 0.7335, possibly 0.7360. Our view was not wrong as AUD exceeded 0.7335 yesterday (31 Aug) as it rose 0.7341. While upward momentum has not improved much further, there is room for AUD to advance to 0.7360. Only a break of 0.7255 (‘strong support’ level previously at 0.7235) would indicate that the current AUD strength has come to an end.”