In the opinion of FX Strategists at UOB Group Quek Ser Leang and Peter Chia, AUD/USD could see its gains accelerated on a close above 0.7135.

Key Quotes

24-hour view: “While AUD closed largely unchanged at 0.7052 (+0.06%) last Friday, it traded on a firm note during early Asian hours. Upward momentum is beginning to build and AUD could rise above 0.7105. However, the next resistance at 0.7130 is not expected to come under threat. Support is at 0.7050 followed by 0.7025.”

Next 1-3 weeks: “AUD traded on a firm note in early Asia hours and moved above last week’s high of 0.7072. Upward momentum is beginning to build and the risk from here is tilted to the upside towards 0.7135. Looking ahead, AUD has to close above this level before a sustained advance is likely. Overall, only a breach of 0.7000 would indicate that the current upward pressure has eased.”