Australian Dollar: Upside risk hinges on 0.7150 against US Dollar – UOB

United Overseas Bank’s Quek Ser Leang and Lee Sue Ann note AUD/USD retested recent highs near 0.7130 but momentum has not strengthened markedly. They still see upside risk toward 0.7150 and potentially 0.7175 over the next days, yet stress that the pair must break clearly above 0.7150 while holding above 0.7070, with support at 0.7110 and 0.7090 intraday.

Australian Dollar needs clear break higher

"24-HOUR VIEW: AUD rose and retested Monday’s high of 0.7129 yesterday before closing at 0.7125 (+0.54%). Despite the advance, upward momentum has not increased significantly. While there is a chance for AUD to rise toward 0.7150, it might not be able to break above this level. Support is at 0.7110, followed by 0.7090."

"1-3 WEEKS VIEW: Tracking our positive AUD view since early this month, we highlighted on Tuesday (18 Aug, spot at 0.7110) that “the risk remains on the upside, and the next level to monitor is 0.7150.” Yesterday, AUD dipped below our ‘strong support’ level at 0.7070 (low was at 0.7067) before rising sharply to 0.7129. 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. The likelihood of AUD breaking clearly above 0.7150 will remain intact as long as AUD holds above 0.7070."

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