AUD/USD could advance further and visit the 0.7335 level in the next weeks, commented FX Strategists at UOB Group.

Key Quotes

24-hour view: “We highlighted yesterday that ‘the overbought rally in AUD has scope extend to 0.7315 before easing’. AUD subsequently rose to 0.7314 before pulling back. Conditions remain overbought and this coupled with easing momentum indicates that AUD is likely to consolidate for today, expected to be between 0.7255 and 0.7310.”

Next 1-3 weeks: “Our update from yesterday (13 Jan, spot at 0.7285) still stands. As highlighted, the solid and rapid build-up in momentum from the previous day is likely to lead to AUD advancing to 0.7335. Only a breach of 0.7215 (no change in ‘strong support’ level) would invalidate our view.”