AUD/USD shifts its focus to 0.7315 – UOB

FX Strategists at UOB Group believe the pair could attempt a test of the 0.7315 level in the next weeks.

Key Quotes

24-hour view: “The 0.7260 target indicated yesterday was not met as AUD traded mostly sideways before briefly popping to a high of 0.7253 during late NY hours. However, the better than expected Australia jobs data (released just a while ago) sent AUD soaring to 0.7280 (at the time of writing). The strong surge could extend further but not only last week’s 0.7303 peak is a strong resistance, this level is followed closely by the October’s peak of 0.7315, which is also a solid level. All in, AUD is expected to stay underpinned with 0.7220 acting as strong support now (minor support is at 0.7245)”.

Next 1-3 weeks: “We have been “anticipating further AUD strength to 0.7315” since last Thursday (08 Nov, spot at 0.7275) but after the relatively sharp pull-back from 0.7303, we cautioned on Tuesday (13 Nov, spot at 0.7175), the “odds for further AUD strength have diminished”. The ‘key support’ at 0.7150 barely held (low of 0.7164 on Tuesday) but the strong surge just a while ago after the release of better than expected Australia job data suggests 0.7315 is back in sight. However, upward momentum is not as strong as preferred and while AUD could move to 0.7315, it may find it difficult to maintain a toehold above this level (next resistance is at 0.7355). For now, there is no change to the ‘key support’ at 0.7150 but this level is expected to rise quickly over the next few days”.