AUD/USD: Positive tone with 0.7175 in focus – UOB

UOB analysts Quek Ser Leang and Peter Chia note that AUD/USD surprised to the upside, reaching 0.7143 and closing around 0.7127. Intraday, they see room for a test of 0.7150 before pullback risks increase, with 0.7175 as the next resistance. On a 1–3 week horizon, the outlook remains constructive as long as support at 0.7055 holds.

Uptrend intact toward higher resistance

"We did not expect AUD to rise to a high of 0.7143 (we were expecting range-trading). Despite the relatively strong advance, upward momentum has not increased much."

"However, there is a chance for AUD to test 0.7150 before the risk of a pullback increases. The next resistance at 0.7175 is unlikely to come under threat."

"On the downside, support levels are at 0.7105 and 0.7085."

"However, the outlook remains positive, and the next level to monitor is 0.7175 (note that there is another resistance level at 0.7150). We will maintain our view as long as 0.7055 (‘strong support’ level was at 0.7015 yesterday) is not breached."

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