AUD/USD seen retaking 0.74 and above – UOB

AUD/USD’s upside momentum is expected to regain the area above the 0.74 mark in the next weeks, in opinion of FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our expectation for AUD to ‘move higher’ did not materialize as it traded within a narrow range of 20 pips (0.7354/0.7374). Momentum indicators are mostly neutral and AUD could continue to consolidate, expected to be between 0.7335 and 0.7380.”

Next 1-3 weeks: “Two days ago (25 Nov, spot at 0.7370), we indicated that AUD ‘is ready to tackle the year-to-date high at 0.7413’. Since then, it has not been able to make much headway on the upside as it traded in a quiet manner. There is no change in our view for now and only a break of 0.7285 (no change in ‘strong support’ level) would indicate that USD is not ready to move higher. That said, lackluster shorter-term momentum could lead to a couple of days of consolidation first (before the next push higher to 0.7413).”