Australian Dollar: Tentative upside risk above 0.6980 against US Dollar – UOB

United Overseas Bank’s (UOB) Quek Ser Leang sees AUD/USD confined to a 0.6915–0.6950 intraday range as momentum remains lacklustre. For 1–3 weeks, upward momentum is tentatively building, with rising risk of a break above 0.6980 while 0.6900 acts as strong support. Over 1–3 months, however, the broader trend remains negative, with focus on 0.6707 below 0.6835.

Australian Dollar holds in tight band

"24-HOUR VIEW: AUD fell to a low of 0.6921 two days ago. When it was at 0.6925 yesterday, we stated that “while AUD could retreat further, given the lacklustre downward momentum, any decline is likely to be contained within a 0.6900/0.6950 range.” AUD subsequently rose to 0.6946, dipped to 0.6907 before recovering to close marginally higher by 0.01% at 0.6929. There has been no clear shift in either downward or upward momentum, and AUD is likely to range-trade today, probably between 0.6915 and 0.6950."

"1-3 WEEKS VIEW: Last Wednesday (01 Jul, spot at 0.6915), we indicated that AUD “is likely to trade between 0.6870 and 0.6980 for the time being.” After AUD rose to 0.6959, we highlighted on 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.” While AUD has not been able to make any headway on the upside, 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. Know more.)