The upside momentum could motivate AUD/USD to visit the 0.7500 region in the next weeks, suggested FX Strategists at UOB Group.
Key Quotes
24-hour view: “Our expectations for AUD to trade sideways last Friday were incorrect as it soared to 0.7380 before extending its advance during early Asian hours. The break of the strong resistance at 0.7390 coupled with solid upward momentum is likely to lead to further advance. The next resistance is at 0.7450. The upside risk is intact as long as AUD does not drop below 0.7340 (minor support is at 0.7365).”
Next 1-3 weeks: “Last Friday (04 Mar, spot at 0.7315), we expected AUD to continue to advance and we highlighted that ‘the next resistance level above 0.7350 is at 0.7390’. AUD subsequently cracked 0.7350 (high of 0.7380 last Friday) before moving above 0.7390 during Asian hours. Upward momentum remains strong and AUD is likely to continue to head higher. The next level to focus on is at 0.7450 followed by 0.7500. On the downside, the ‘strong support’ level has moved higher to 0.7300 from 0.7255.”