A move above 0.6950 should allow AUD/USD to have another chance to revisit the 0.7000 mark in the near term, suggest Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group.

Key Quotes

24-hour view: “Yesterday, we highlighted that AUD ‘is unlikely to advance much further’ and we expected it to ‘trade between 0.6870 and 0.6950’. While AUD did not advance further, it traded within a range of 0.6860/0.6930. The price actions are likely part of a consolidation phase and AUD is likely to trade between 0.6855 and 0.6925 today.”

Next 1-3 weeks: “Yesterday (10 Jan, spot at 0.6910), we indicated that while momentum continues to point to a higher AUD, it must break and stay above 0.6950 before a move to 0.7000 is likely. We continue to hold the same view. Overall, only a breach of 0.6825 (no change in ‘strong support’ level from yesterday) would indicate the current upward pressure has eased.”