Australian Dollar: Momentum builds toward 0.7200 against US Dollar – UOB

FXStreet Insights Team FXStreet

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann highlight AUD/USD’s sharp rally to 0.7180 and close near 0.7170, noting the move looks stretched but still lacks signs of a pause. Intraday, they see scope to edge above 0.7180 while 0.7200 caps, and on a 1–3 week horizon they expect AUD strength to persist toward that major resistance as long as 0.7105 holds.

Strong momentum toward key barrier

"24-HOUR VIEW: We expected AUD to “trade sideways between 0.7105 and 0.7135” last Friday. We were incorrect. Instead of trading sideways, AUD soared to 0.7180 before settling at 0.7169 (+0.78%). The sharp rise appears overdone, but there are no signs of a pause just yet. Today, AUD could edge above 0.7180. The significant resistance at 0.7200 is unlikely to come into view. Support is at 0.7150; a breach of 0.7140 would indicate that the immediate upward pressure has eased."

"1-3 WEEKS VIEW: Last Thursday (19 Aug, spot at 0.7125), we highlighted that “while further AUD strength is not ruled out, it must first break clearly above 0.7150 before a move to 0.7175 can be expected.” On Friday, AUD broke decisively above 0.7150, soaring to a high of 0.7180. AUD strength remains intact, and the level to watch is 0.7200. Note that this level is a major resistance. To keep the momentum going, AUD must hold above 0.7105 (‘strong support’ level was at 0.7080 last Friday)."

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

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

AUD/USD bulls regain control above 0.6950 amid USD retreat

AUD/USD regains traction and extends the previous day's bounce from the weekly low, aiming for 0.7000 in Asia on Friday. The overnight pullback in US bond yields keeps the US Dollar below an 18-month high, which in turn offers some support to the pair. Meanwhile, hawkish RBA expectations also keep the major underpinned.

USD/JPY holds gains near 158.00 after Japan's weak Household Spending data

USD/JPY clings to gains around 158.00 after data showed on Friday that Japan's Household Spending fell for the ninth straight month, undermining the Japanese Yen. Meanwhile, the US Dollar remains depressed as the overnight fall in US bond yields counters a hawkish Fed and geopolitical uncertainties, could cap any downside in the pair.

Gold firms up toward $4,200 as USD pulls back

Gold trades with a positive bias for the second straight day on Friday, though it remains range-bound in the range it has traded in over the past two weeks or so. The overnight decline in US bond yields keeps the US Dollar depressed below an 18-month high, allowing the non-yielding bullion to recover further from a two-month low in a bid to retest the $4,200 level.

Ethereum drops below $2,500 as rising Treasury yields trigger selling pressure

Ethereum (ETH) fell below $2,500 on Thursday, down nearly 4% and extending losses for a third consecutive day. The decline follows rising Oil prices and US Treasury yields over the past few days. The 10Y Note Yield reached a 24-year high at 5.35%, and the 30Y Note Yield climbed above 5.70% earlier on the day, sparking major distributions in the crypto market.

The inflation illusion: How government formulas shape the data

Every month, the government releases a barrage of economic statistics. Employment, inflation, consumer spending, economic growth, and countless other measurements are presented as objective facts that policymakers, investors, and the public can use to understand the economy. But what happens when the methodology used to produce those numbers changes?

The UK 30-year gilt just hit a 1998 high. Is that good or bad for the British Pound?

The yield on the UK's 30-year government bond, or gilt, went through 6% on October 1 for the first time since early 1998, and on Monday the Pound was at its strongest against the Euro since June 2025. The gilt market's 28-year high is mostly someone else's. Since early May, the 30-year gilt yield has risen about 0.15 of a percentage point and the US 30-year about 0.7.