Australian Dollar: Upside risk intact above 0.7025 against US Dollar – UOB

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann report AUD/USD briefly broke above 0.7075 to 0.7091 before retreating to close almost unchanged at 0.7063. They expect a 0.7050–0.7085 intraday range, but keep an upside bias over 1–3 weeks as long as the pair holds above 0.7025, with potential for a move toward 0.7100 if 0.7075 is closed above.

Australian Dollar supported with key levels nearby

"24-HOUR VIEW: Following Tuesday’s price action, we indicated yesterday that “the slight increase in upward momentum suggests AUD could edge higher, but based on the current momentum, a sustained break above 0.7075 appears unlikely.” AUD broke above 0.7075 during the NY session, printing a high of 0.7091 before dropping back quickly to close largely unchanged at 0.7063 (+0.02%). The brief advance did not result in any increase in upward momentum, and today, AUD is likely to trade in a range between 0.7050 and 0.7085."

"1-3 WEEKS VIEW: Since early last week (as annotated in the chart below), we have been of the view that the risk for AUD is on the upside. Two days ago (11 Aug, spot at 0.7055), we highlighted that “the upside risk will remain intact as long as AUD holds above 0.7025 (‘strong support’ level).” We also highlighted that “should AUD close above 0.7075, it could continue to rise toward 0.7100.” Yesterday, AUD rose briefly to a high of 0.7091, retreating quickly to close at 0.7063 (+0.02%). While upward momentum is starting to slow, only a breach of 0.7025 would indicate that the upside risk has faded."

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