In light of the recent price action, AUD/USD could now revisit the 0.7040 region in the next weeks, comment FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.

Key Quotes

24-hour view: “The strong surge in AUD to 0.7012 during NY session appears to be overdone and AUD is unlikely to strengthen much further. For today, AUD is more likely to trade between 0.6965 and 0.7020.”

Next 1-3 weeks: “Despite the relatively strong advance in AUD yesterday, upward momentum has not improved by much. That said, there is scope for AUD to advance further to 0.7040. At this stage, the odds for AUD to rise to the next resistance at 0.7070 are not high. On the downside, a breach of 0.6935 (‘strong support’ level) would indicate that the current upward pressure has eased.”