AUD/USD: Overdone rally still has room to test 0.7135 – UOB

United Overseas Bank’s (UOB) economists Quek Ser Leang and Lee Sue Ann note AUD/USD broke above the prior range, reaching near 0.7100. Despite labeling the recent surge as overdone, they still see room for a push toward 0.7135, with 0.7000 now the key strong support. Near term, resistance is at 0.7100/0.7135, while 0.7060 and 0.7040 act as initial supports.

Room for further gains despite stretched move

"Following the strong surge in AUD two days ago, we highlighted yesterday (09 Apr, spot at 0.7030) that “the rapid advance appears overdone, but there is room for AUD to test 0.7135.”"

"We also highlighted the following: “To keep the momentum going, AUD must hold above 0.6970 (‘strong support’ level)."

"However, there is scope for AUD to test 0.7100."

"The major resistance at 0.7135 is unlikely to come into view for now."

"Near-term, 0.7000 is already a firm support.”"

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)