AUD/USD: Upside pressure mitigated below 0.7440 – UOB

AUD/USD's strength is expected to mitigate on a break below 0.7440, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “Yesterday, we expected AUD to ‘to trade sideways between 0.7465 and 0.7525’. AUD subsequently traded in a relatively choppy manner between 0.7456 and 0.7519. The underlying tone has improved somewhat and AUD could edge higher to 0.7540. A sustained advance above this level is unlikely (next resistance is at 0.7555). Support is at 0.7490 followed by 0.7460.”

Next 1-3 weeks: “There is no change in our view from yesterday (29 Mar, spot at 0.7500). As highlighted, upward momentum is waning but only a breach of 0.7440 (no change in ‘strong support’ level from yesterday) would indicate that the AUD strength that started more than a week ago has run its course. Until there is a breach of the ‘strong support’ level, there is a chance, albeit a slim one for AUD to test 0.7555.”