Australian Dollar: Downside bias but support holds against US Dollar – UOB

United Overseas Bank’s (UOB) Quek Ser Leang notes that AUD/USD remains under mild pressure, with intraday bias tilted lower after a narrow range session. Any decline is expected to stay within 0.6865–0.6900, with a clear break below 0.6865 seen as unlikely. Over 1–3 weeks, a move above 0.6940 would negate downside targets, while the broader trend still points toward 0.6707.

Australian Dollar stays under mild pressure

"24-HOUR VIEW: Yesterday, we indicated that AUD “is likely to trade in a range between 0.6880 and 0.6920.” AUD then traded within a narrower range of 0.6878/0.6904, closing largely unchanged at 0.6886 (-0.06%). While the slight increase in downward momentum tilts the bias toward the downside today, any decline is likely to be contained within a 0.6865/0.6900 range. AUD is unlikely to break clearly below 0.6865."

"1-3 WEEKS VIEW: After holding a negative AUD view for more than a week, we highlighted the following yesterday (29 Jun, spot at 0.6895): “Downward momentum is starting to ease. A break above 0.6940 (‘strong resistance’ was at 0.6950 last Friday) would indicate that 0.6835 is out of reach.” We continue to hold the same view for now."

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