The upside momentum could push AUD/USD to the 0.7440 area in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “We highlighted last Friday that ‘further AUD strength is not ruled out but deeply overbought conditions suggest that any advance is unlikely to break the next major resistance at 0.7440’. AUD subsequently rose to 0.7418 before closing on a firm note at 0.7415 (+0.54%). Conditions remain overbought but there is scope for AUD grind higher. That said, a clear break of 0.7440 is unlikely for today. On the downside, a breach of 0.7360 (minor support is at 0.7385) would indicate that the current upward pressure has eased.”

Next 1-3 weeks: “Our update from last Friday (18 Mar, spot at 0.7385) still stands. As highlighted, momentum remains strong and AUD could rise towards the next major resistance at 0.7440. The strong upside pressure is intact as long as AUD does not move below 0.7320 (‘strong support’ level was at 0.7300 last Friday).”