In the opinion of UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang, extra upside remains likely in AUD/USD in the next weeks.

Key Quotes

24-hour view: “AUD traded within a range of 0.6931/0.6997 yesterday, slightly narrower than our expected range of 0.6930/0.7000. Upward momentum has improved a tad and while the bias for AUD is to the upside today, a sustained advance above 0.7025 is unlikely. Support is at 0.6965, a breach of 0.6940 would indicate the current mild upward pressure has faded.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (17 Jan, spot at 0.6965). As highlighted, while the bias for AUD is still on the upside but without improvement in momentum, we continue to think that 0.7070 is unlikely to come into view so soon. On the downside, a break of 0.6915 (‘strong support’ level previously at 0.6890) would indicate that the AUD strength from more than a week ago has ended.”