AUD/USD could now extend the upside momentum to the 0.7315 level in the short-term horizon, noted FX Strategists at UOB Group.
24-hour view: “We highlighted yesterday that AUD ‘could strengthen further but the major resistance at 0.7315 is unlikely to come under threat’. We added, ‘0.7285 is already quite a strong resistance’. Our view for AUD to strengthen was not wrong as it rose to 0.7290 before easing off. Upward pressure has waned somewhat and AUD is unlikely to strengthen further. For today, AUD is more likely to trade sideways between 0.7230 and 0.7285.”
Next 1-3 weeks: “Our view from yesterday (01 Mar, spot at 0.7160) still stands. As highlighted, upward momentum is beginning to build and AUD is likely to trade with an upward bias towards the major resistance at 0.7315. The upward bias is deemed intact as long as AUD does not move below the ‘strong support’ at 0.7190 (level was at 0.7165 yesterday).”