AUD/USD: Potential upside near-term – UOB

AUD/USD is expected to extend the upside bias in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our expectation for AUD to “drift lower to 0.6950” did not materialize as it recovered after touching a low of 0.6967. The price action offers no fresh clues and AUD could continue to trade sideways for today, likely between 0.6970 and 0.7030.”

Next 1-3 weeks: “We indicated last Wednesday (15 Jul, spot at 0.6985) that ‘upward momentum is beginning to improve and if AUD closes above 0.7010, it could move to the June’s peak of 0.7067’. Since then, AUD appears to be struggling to maintain the build-up in momentum and there is no daily closing above 0.7010. Upward momentum has diminished considerably and while AUD could inch upwards, the 0.7067 high is likely out of reach for now. On the downside, a break of 0.6930 would indicate the current mild upward pressure has eased.”