AUD/USD: Room for gains should market confidence stabilise further – OCBC

AUD firmed on signs of sustained risk-on momentum as fears of banking stresses eased. Economists at OCBC Bank expect the Aussie to enjoy further gains.

Bias for upside play

“We see room for AUD to rise should broad market confidence stabilise further. No more negative news of bank fall outs and a tamer Fed tightening trajectory will be pre-requisites for AUD to stay supported.” 

“Daily momentum shows signs of turning mild bullish while RSI rose. Bias for upside play.” 

“Resistance at 0.6710 and 0.6760/80 levels (38.2% fibo, 21, 50, 200-DMAs).” 

“Support at 0.6660 (50% fibo), 0.6550 (61.8% fibo retracement of Oct low to Feb high) and 0.64 levels (76.4% fibo).”