In opinion of FX Strategists at UOB Group, AUD/USD needs to clear the 0.7520 level to allow for the continuation of the uptrend in the near term.

Key Quotes

24-hour view: “We expected AUD to ‘trade sideways between 0.7480 and 0.7530’ yesterday. However, AUD dipped to 0.7471 before rebounding to close on a soft note at 0.7485 (-0.34%). Downward momentum has improved a tad and AUD is likely to edge lower. That said, the strong support at 0.7440 is unlikely to come under threat (there is another support at 0.7460). Resistance is at 0.7505 followed by 0.7520.”

Next 1-3 weeks: “We have held a positive view in AUD for two weeks now. As AUD struggles to extend its gains, in our latest narrative from three days ago (29 Mar, spot at 0.7500), we highlighted that ‘upward momentum is waning but only a breach of 0.7440 would indicate that AUD strength has run its course’. AUD traded sideways the past couple of days and upward momentum has waned further. From here, AUD has to close above 0.7520 within these 1-2 days or the chance for further AUD strength would diminish quickly.”