In opinion of FX Strategists at UOB Group, AUD/USD’s upside momentum targets the 0.7800 neighbourhood and above in the next weeks.
24-hour view: “AUD dropped to 0.7719 last Friday before rebounding strongly to close at 0.7760 (+0.07%). Upward momentum has improved a tad but any advance in AUD is expected to face solid resistance at 0.7795. On the downside, a break of 0.7720 would indicate the current upward pressure has eased (minor support is at 0.7740).”
Next 1-3 weeks: “We have held a positive view in AUD since early last week. In our latest narrative on 10 Feb (spot at 0.7735), we indicated that ‘further AUD strength would not be surprising but it is left to be seen if advance could extend to 0.7795’. Since then, upward momentum has improved, albeit not by much. The prospect for a move to 0.7795 has increased and a break of this level would shift the focus to 0.7820. Overall, AUD is expected to trade with an upward bias as long as it does not move below 0.7695 (‘strong support’ was at 0.7660 previously).”