AUD/USD: Limited near term upside within 0.7100–0.7155 – UOB

United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann keep a mildly positive short-term view on AUD/USD after it climbed to 0.7147. The pair is expected to trade between 0.7100 and 0.7155 intraday, with a possible test of 0.7155 if momentum improves. However, the broader 1–3 month technical picture still points to a lower Australian Dollar toward 0.6765 if 0.6850/0.6870 breaks.

Short term constructive but medium term soft

"Despite advancing, AUD has not gained much momentum, and it is unlikely to rise much further."

"Today, we expect AUD to trade between 0.7100 and 0.7155."

"That said, a test of 0.7155 is not ruled out, but AUD must close above this level before a move to 0.7190 can be expected."

"On the downside, a breach of 0.7060 (‘strong support’ level was at 0.7030 yesterday) would mean that the current upward pressure has eased."

"The overall technical picture points to a lower AUD/USD; a breach of the 0.6850/0.6870 support zone could trigger a decline toward 0.6765."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)