According to economist Lee Sue Ann and market strategist Quek Ser Leang of UOB Group, new earnings could lift the AUD/USD to the 0.6745 area on the short-term horizon.
24 hour perspective: The sharp rise in the AUD last Friday was a surprise (we expected it to trade in a range). The rapid increase in momentum is likely to lead to further AUD strength. However, the main resistance at 0.6745 is likely out of reach for now. It must be taken into account that there is another resistance at 0.6715. To maintain momentum, the Australian Dollar must not break below 0.6640 (minor support is at 0.6660).
Next 1 to 3 weeks: Following the decline of the AUD and the break of our ‘strong support’ level of 0.6575 last Thursday (low has been 0.6571), on Friday (December 1, pair at 0.6610) we changed from a positive stance to a neutral one. We maintained the view that the AUD was likely to trade in a range between 0.6530 and 0.6665. However, the Australian Dollar took off and closed strongly at 0.6676 (+1.08%). Price developments indicate that our view that the AUD would trade within a range was wrong. In other words, The strength that began in the middle of last month remains intact. From here, as long as AUD remains above 0.6620, it could continue to rise towards the main resistance of 0.6745.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
