UOB Research discusses AUD/USD technical outlook and adopts a tactical bullish bias in the near-term.
"After trading in a lackluster manner for the past couple of weeks, AUD was jolted awake as it rocketed and gained a whopping +0.86% yesterday (02 Dec). The price action suggests the weak phase that started more than 2 weeks ago (see annotations in the chart below) has run its course.
To put it another way, last Friday’s (29 Nov) low of 0.6755 is an intermediate bottom and AUD is expected to stay above this level for the next few weeks. The considerable pick-up in momentum indicates AUD is likely to trade with an upward bias towards 0.6870. This is a solid resistance level and would not be an easy level to crack," UOB notes.
"All in, AUD is expected to trade with a firm footing for now as long as it does not move below 0.6765 within the next few days," UOB adds.