Australian Dollar: Momentum fades into sideways band against US Dollar – UOB

UOB’s Quek Ser Leang and Lee Sue Ann observe that AUD/USD has been range‑trading slightly higher than expected, with intraday levels seen between 0.6920 and 0.6960. The earlier tentative upside momentum has faded, and for the next 1–3 weeks the pair is expected to trade between 0.6890 and 0.6975. On a 1–3 month horizon, AUD/USD remains negative, with focus below 0.6835 toward 0.6707.

Aussie Dollar stuck in tight range

"24-HOUR VIEW: We expected AUD to range-trade between 0.6920 and 0.6955 last Friday. However, AUD traded within a higher range of 0.6934/0.6969. AUD closed at 0.6950 (+0.12%), but it opened on a soft note today. We are unable to derive much from the price action. Today, AUD could trade between 0.6920 and 0.6960."

"1-3 WEEKS VIEW: We highlighted last Tuesday (07 Jul, spot at 0.6955) that “upward momentum is building tentatively, and the risk of AUD breaking above 0.6980 is increasing and will continue to increase as long as AUD holds above the ‘strong support’ level, now at 0.6900.” On Friday (10 Jul, spot at 0.6935), we indicated the following: “Since then, AUD has not been able to make any headway on the upside, and the buildup in momentum has faded. From here, AUD is likely to trade in a range between 0.6890 and 0.6975.” There is no change in our view."

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