Australian Dollar: Short-term gains within capped range against US Dollar – UOB

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann see AUD/USD biased slightly higher intraday after Friday’s consolidation, but expect any move to remain contained between 0.7010 and 0.7045. Over the next 1–3 weeks, they retain a positive view with scope toward 0.7070 while 0.6985 holds as strong support, contrasting with a longer-term bearish EMA signal targeting the 0.6923 July low.

Australian Dollar supported but constrained

"24-HOUR VIEW: When AUD was at 0.7015 in the early Asian session last Friday, we indicated that “the current price movements are likely part of a consolidation phase between 0.6995 and 0.7030.” AUD then dipped to 0.7005, edged up to 0.7039 before closing at 0.7033. The slight increase in upward momentum suggests that the bias for AUD is tilted to the upside. However, any advance is likely to stay within a 0.7010/0.7045 range."

"1-3 WEEKS VIEW: We turned positive on AUD last Wednesday (21 Oct, spot at 0.7005), indicating that AUD “could rise toward 0.7035.” After AUD tested 0.7035, we highlighted on Thursday (22 Oct, spot at 0.7025) that AUD “could advance further, though the next technical target at 0.7070 may not come into view so soon.” We will continue to hold the same view as long as 0.6985 (no change in ‘strong support’ level) is not breached."

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