AUD/USD now seen within 0.7320-0.7450 – UOB

According to FX Strategists at UOB Group, AUD/USD remains side-lined between 0.7320 and 0.7450 for the next weeks.

Key Quotes

24-hour view: “We highlighted yesterday that AUD ‘could test 0.7390 but a sustained rise above this level is unlikely’. We added, ‘the next resistance at 0.7420 is not expected to come into the picture’. Our view was not wrong even though the subsequent AUD strength exceeded our expectation as it came within a few pips of 0.7420 (overnight high of 0.7414). While overbought, the advance has room to test 0.7420 first before easing. A clear break of the next resistance at 0.7450 would come as a surprise. On the downside, a breach of 0.7355 (minor support is at 0.7375) would indicate that the current upward pressure has eased.”

Next 1-3 weeks: “Our view from a week ago (23 Jul, spot at 0.7385) where AUD could trade between 0.7320 and 0.7450 for a period of time still stands. That said, shorter-term upward momentum is beginning to improve and the upside risk has increased. However, AUD has to close above 0.7450 before a sustained advance can be expected. The prospect for AUD to close above 0.7450 is not high for now but would remain intact as long as AUD does not move below 0.7355 within these couple of days.”