AUD/USD sets eyes on 0.8125/65 – UOB

The Aussie Dollar is seen picking up further pace vs. the buck, taking the pair to the 0.8125/65 band in the near term.

Key Quotes

24-hour view: “Despite our reservation, AUD managed to break the strong 0.8035/40 reservation and hit an overnight high of 0.8083. From here, a move above the overnight high would not be surprising but the 2017 peak of 0.8125 is not expected to come into the picture for now (0.8100 is already a strong resistance). Support is at 0.8020 but only a move back below 0.7990 would indicate that the current strong upward pressure has eased”.

Next 1-3 weeks: “AUD finally managed to break last week’s 0.8038 peak as it hit a high of 0.8083. After deteriorating for several days, upward momentum has perked up considerably with the strong rally yesterday and from here, the revised ‘target’ of 0.8125 appears to be back in sight. Looking further ahead, a break of this rather strong resistance of 0.8125 (high in 2017) could lead to a quick pop higher towards the next ‘target’ at 0.8165. On the downside, now that momentum has picked up, the ‘stop-loss’ is raised higher to 0.7990 from 0.7940”.