AUD Surges to New Highs, Eyes 0.7200 Resistance

Australia's currency, the Australian Dollar (AUD), has seen significant gains against the US Dollar (USD) in recent days. According to UOB's Quek Ser Leang and Lee Sue Ann, the AUD/USD pair rallied sharply to 0.7180 before settling at 0.7169, a gain of 0.78%. The analysts note that while the move appears overdone, there are currently no signs of a pause in the upward momentum.

The analysts expect the AUD to edge above 0.7180 on an intraday basis, but with significant resistance at 0.7200 looming. To keep the momentum going, the AUD must hold above 0.7105, which is considered strong support. On a 1-3 week horizon, UOB sees scope for further AUD strength towards 0.7200 as long as the level of 0.7105 holds.

Last Friday, UOB had predicted that the AUD would trade sideways between 0.7105 and 0.7135. However, the currency surprised by soaring to a high of 0.7180 instead. This sharp rise has left some analysts questioning whether the AUD's strength is sustainable in the long term.