Further upside could see AUD/USD testing the mid-0.7000s in the next weeks, according to FX Strategists at UOB Group.
24-hour view: “The strong gains in AUD that hit a high of 0.7025 last Friday came as a surprise. While the rapid rise appears to be running too fast, too soon, there is scope for AUD to test the major 0.7050 resistance. For today, a sustained rise above this level is unlikely (next resistance is at 0.7070). On the downside, a break of 0.6985 would indicate that the current upward pressure has eased (minor support is at 0.7000)”.
Next 1-3 weeks: “While there is no change to our view from last Friday (12 Jul, spot at 0.6975) wherein AUD is expected to “trade in an undecided manner within a broad 0.6910/0.7050 range”, the rapid pace of which AUD move towards the top of the range was not exactly expected (high of 0.7025 during NY hours on Friday). For now, we continue to hold the same view unless AUD break above the major 0.7050/70 resistance zone. At this stage, the risk for a clear break of this zone is not high but it would continue to rise if AUD can continue hold above 0.6960 within these few days”.