In opinion of Lee Sue Ann and Quek Ser Leang, FX Strategists at UOB Group, AUD/USD could now trade between 0.7370 and 0.7495 in the short term.

Key Quotes

24-hour view: “While we expected a stronger AUD yesterday, we were of the view that ‘any advance is unlikely to break the strong resistance at 0.7420’. However, AUD cracked 0.7420 and rose to 0.7457 before easing off. The rapid up-move appears to be running ahead of itself and AUD is unlikely to advance further much further. From here, AUD is more likely to trade sideways between 0.7400 and 0.7455.”

Next 1-3 weeks: “On Tuesday (19 Apr, spot at 0.7355), we highlighted that ‘downward momentum has improved a tad and the chance for AUD to break 0.7325 has increased’. Yesterday (20 Apr), AUD rebounded and took out our ‘strong resistance’ level at 0.7420 (high of 0.7457). Downward momentum has more or less dissipated and AUD is likely to trade sideways from here, expected to within a range of 0.7370/0.7495.”