Extra gains could motivate AUD/USD to revisit the 0.6780 zone in the near term, note Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group.

Key Quotes

24-hour view: “We expected AUD to trade sideways in a range of 0.6630 and 0.6690 last Friday. However, AUD rose to a high of 0.6725. Upward momentum has improved and AUD is likely to advance further. However, the major resistance at 0.6780 is unlikely to come into view today. On the downside, a breach of 0.6670 (minor support is at 0.6685) would indicate that the current upward pressure has eased.”

Next 1-3 weeks: “We have expected AUD to consolidate since early last week. In our update on Friday (17 Mar, spot at 0.6660), we highlighted that “in view of the decreased volatility, we have narrowed the expected consolidation range to 0.6570/0.6735”. AUD subsequently rose to 0.6725 before closing on a firm note at 0.6699 (+0.62%). Upward momentum has improved and this will likely lead to AUD trading with an upward bias towards 0.6780. Overall, only a breach of 0.6640 (‘strong support’ level) would indicate that the build-up in momentum has faded.”