AUD/USD test of the upper 0.7630/0.7770 likely – UOB

FX Strategists at UOB Group believe the Aussie Dollar could now test the upper end of the 0.7630/0.770 consolidative range.

Key Quotes

24-hour view: “While AUD extended its gain as expected, the high of 0.7726 fell far short of the ‘target’ indicated at 0.7760. The rapid pullback from the top is gaining momentum but at this stage, we do not expect a clear break of the strong 0.7630 support (next support is at 0.7600). Resistance is at 0.7695 followed by 0.7725. The latter level is likely ‘safe’ for today”.

Next 1-3 weeks: “The recent mild downward pressure continues to ease as AUD closed on a positive note in NY. However, it is too early to expect a sustained rebound. We continue to expect AUD to trade sideways for now even though the improved undertone suggests that the immediate bias is for a probe higher towards the top of the currently expected 0.7630/0.7770 consolidation range”.