AUD/USD could still see its upside reinvigorated on a breakout fo the 0.6760 level, according to Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia at UOB Group.

Key Quotes

24-hour view: “Yesterday, we expected AUD to trade in a range of 0.6655/0.6700. However, AUD rose to a high of 0.6718 before closing at 0.6713 (+0.43%). Upward momentum has improved, albeit not much. Today, AUD could edge higher but it is unlikely to challenge the major 0.6760 (there is another resistance at 0.6730). On the downside, a breach of 0.6685 (minor support is at 0.6700) would indicate that the current mild upward pressure has eased.”

Next 1-3 weeks: “Yesterday (30 Mar, spot at 0.6680), we highlighted, that ‘While AUD could edge lower, it has to break clearly below 0.6625 before a sustained decline is likely’. We added, ‘The likelihood of a clear break below 0.6625 is low for now’. AUD subsequently rebounded and downward momentum has fizzled out. After rising to a high of 0.6718, upward momentum has improved somewhat instead. However, this time around, AUD has to break clearly above 0.6760 before a sustained advance is likely. The prospect of a clear break of 0.6760 is not high but it would remain intact as long as AUD stays above 0.6655 in the next 1-2 days.”