AUD/USD now looks to 0.6570 – UOB

AUD/USD faces rising bets of a test of the 0.6570 level in then next weeks, according to FX Strategists at UOB Group.

Key Quotes

24-hour view: “AUD dropped to 0.6378 yesterday before staging a rapid and robust rally to 0.6506. The price action upon opening this morning remains strong and from here, AUD could strengthen further. That said, severely overbought conditions suggest that a clear break of last week’s 0.6570 top is unlikely for today. On the downside, 0.6470 is expected to be strong enough to hold any pullback.”

Next 1-3 weeks: “The sudden and outsized gain of +1.44% (NY close of 0.6497) yesterday was unexpected. The risk has shifted quickly to the upside towards last month’s top at 0.6570. This level is acting as a solid resistance and AUD has post a daily closing above this level before further sustained advance can be expected. At this stage, the prospect for such a scenario is not that high but it would continue to increase as long as AUD does not move below 0.6435 within these few days.”