Australian Dollar: 0.7015 caps further gains against US Dollar – UOB

United Overseas Bank’s (UOB) Quek Ser Leang notes AUD/USD outperformed on Monday, closing at 0.6980 after China’s stronger Q3 GDP print. Short term, the Australian Dollar is seen probing 0.7000, though a sustained break above this level and the major resistance at 0.7015 is deemed unlikely. Over coming weeks, UOB expects range-trading between 0.6915 and 0.7015 despite a bearish EMA crossover.

Australian Dollar faces nearby resistance

"24-HOUR VIEW: We expected AUD to “edge higher” yesterday, but we indicated that it “should stay within a 0.6940/0.6985 range.” However, AUD rose more than expected to 0.6993 before closing at 0.6980 (+0.51%). Upward momentum is increasing, albeit not significantly. Today, there is scope for AUD to test 0.7000. A clear break above this level is unlikely. The major resistance at 0.7015 is also unlikely to come into view. Support is at 0.6965, followed by 0.6950."

"1-3 WEEKS VIEW: Our update from yesterday (19 Oct, spot at 0.6965) remains valid. As highlighted, AUD “appears to have moved into a range-trading phase,” and “for the time being, we expect it to trade between 0.6915 and 0.7015.” "

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