AUD/USD: Further gains lie above 0.7010 – UOB

Extra gains are expected in AUD/USD if the 0.7010 level is cleared in the next weeks, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our expectation for AUD ‘to dip below 0.6910” yesterday was wrong as it staged a sharp reversal after touching a low of 0.6922. The solid bounce could edge above the strong 0.7010 level but is unlikely to challenge the next resistance at 0.7050. Support is at 0.6960 followed 0.6940. The 0.6922 low is expected to be ‘safe’ for today.”

Next 1-3 weeks: “AUD closed on a firm note at 0.6975 yesterday (+0.52%) and upward momentum is beginning to improve. From here, if AUD closes above 0.7010, it would indicate further AUD strength towards the June’s peak of 0.7067. At this stage, the prospect for such a scenario is quite high as long as AUD does not move below 0.6920 within these 1 to 2 days.”