Momentum on the rise in AUD / USD Now targeting the 0.7345 level in the near term, FX strategists at UOB Group noted.
24 hour view: “We expected the AUD to weaken yesterday, but were of the opinion that” any decline is unlikely to break strong support at 0.7245 “. Our view was not wrong as the AUD recovered after hitting a low of 0.7255. The downward pressure has eased somewhat and the AUD is unlikely to weaken further. Overall, the AUD is expected to consolidate and trade between 0.7245 and 0.7305. “
The next 1-3 weeks: “We pointed out two days ago (November 17th, spot at 0.7320) that the AUD ‘should trade with an upward bias at 0.7380’. Since then, the AUD has not been able to clear resistance at 0.7345. The upward momentum has subsided and the AUD the chances of further strength in the AUD have diminished and would continue to decline unless the AUD breaks 0.7345 within those 1-2 days. . Conversely, a breakout of 0.7245 (no change in the “strong support” level) would indicate that the AUD is not yet ready for 0.7380. “