UOB Research discusses AUD/USD technical outlook and flags a scope for an upside extension towards 0.6950.
" After AUD moved above 0.6825, we highlighted last Friday (06 Sep, spot at 0.6810) that if there is a NY closing above 0.6850, it would suggest AUD is “ready to tackle 0.6910, even 0.6950”," UOB notes.
"The solid closing of 0.6865 yesterday suggests further AUD strength would not be surprising. That said, in order to maintain the current ‘overbought momentum’, AUD has to continue to advance as a consolidation would quickly increase the risk of a short-term top. On the downside, only a move below 0.6800 (strong support previously at 0.6760) would indicate the current upward pressure has eased," UOB adds.