Further gains are expected in AUD/USD once 0.7830 is cleared in the short-term horizon, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “We highlighted yesterday that AUD ‘could edge higher but a clear break of 0.7800 is unlikely’. However, AUD popped to 0.7814 before easing off. Despite the advance, upward momentum has not improved by much. That said, there is scope for AUD to test 0.7830 but a sustained rise above this level is unlikely (minor resistance is at 0.7815). Support is at 0.7770 followed by 0.7750.”

Next 1-3 weeks: “On Monday (17 May, spot at 0.7765), we highlighted that the outlook for AUD is mixed and we expected it to trade within a 0.7680/0.7830 range. While AUD is still trading within the range, shorter-term upward momentum is beginning to improve. From here, a daily closing above 0.7830 would indicate that AUD is ready to retest the 0.7890 level. The chance for such a move is not high for now but it would increase as long as AUD does not move below 0.7730 within these few days.”