Australian Dollar: 0.6970 support keeps upside intact against US Dollar – UOB

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann report AUD/USD has eased after testing above 0.7020, with intraday price action now seen consolidating between 0.6985 and 0.7020. Despite slower momentum, the 1–3 week view remains mildly positive as long as support at 0.6970 holds, keeping a potential move toward 0.7045 alive, even though the broader 1–3 month outlook on AUD/USD stays negative.

Australian Dollar pauses after recent gains

"24-HOUR VIEW: AUD rose to a high of 0.7015 two days ago. When it was at 0.7000 yesterday, we stated that “although upward momentum has not increased much, AUD could test 0.7020 before the risk of a pullback increases.” We added, “the major resistance at 0.7045 is unlikely to come into view.” AUD rose more than expected to 0.7027 before pulling back to close marginally lower by 0.01% at 0.6999. Upward momentum has eased, and AUD has likely entered a consolidation phase between 0.6985 and 0.7020."

"1-3 WEEKS VIEW: We have held a positive AUD view since the middle of last week. Yesterday (21 Jul, spot at 0.7000), we indicated that “while upward momentum has slowed, as long as 0.6960 (‘strong support’ level) continues to hold, there is still a chance for AUD to rise toward 0.7045.” We continue to hold the same view, but we are revising the ‘strong support’ level to 0.6970."

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