United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann maintain a moderately positive near-term stance on the AUD/USD pair after its rise to 0.7147. The pair is expected to trade between 0.7100 and 0.7155 during the day, with a possible test at 0.7155 if momentum improves. However, the broader 1-3 month technical picture still points to a lower Australian Dollar towards 0.6765 in the event of a break of 0.6850/0.6870.
Constructive in the compact term, but supple in the medium term
“Despite the increase, the AUD has not gained much momentum and is unlikely to continue to rise.”
“Today we expect AUD to trade between 0.7100 and 0.7155.”
“That said, a test of 0.7155 is not ruled out, however AUD needs to close above this level before a move to 0.7190 can be expected.”
“On the other hand, a break of the 0.7060 level (the ‘forceful support level’ was at 0.7030 yesterday) would mean that the current upside pressure has eased.
“The overall technical picture points to a lower AUD/USD rate; a break of the 0.6850/0.6870 support zone could result in a decline towards 0.6765.”
(This article was created with the facilitate of an artificial intelligence tool and has been reviewed by an editor.)
