In the opinion of FX Strategists at UOB Group Quek Ser Leang and Peter Chia, bets for further upside in AUD/USD seems to be dwindling.

Key Quotes

24-hour view: “We highlighted last Friday that ‘further AUD strength appears likely even though a sustained rise above 0.7300 is unlikely’. AUD subsequently rose to 0.7283 staging a surprising sharp pullback to a low of 0.7202 during NY session. Upward momentum has dissipated and the current movement is likely part of a consolidation. For today, AUD is likely to trade within a range of 0.7190/0.7260.”

Next 1-3 weeks: “We highlighted last Friday that AUD could strengthen further and we indicated that the next resistance is at 0.7340. AUD subsequently eked out a fresh high of 0.7283 before falling sharply to 0.7202. Upward momentum has been dented and the prospect for further AUD strength has diminished. However, only a breach of 0.7160 (we are lowering the ‘strong support’ level from 0.7190) would indicate that the AUD strength that started two weeks ago has run its course.”