Australian Dollar: Upside risk targets 0.7150 against US Dollar – UOB

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann highlight that AUD/USD strength remains intact after a jump to 0.7129, though overbought conditions should confine intraday moves to a 0.7090–0.7130 band. The 1–3 week bias stays to the upside, with the next level to monitor at 0.7150, while strong support is placed at 0.7070.

Australian Dollar stays supported but stretched

"24-HOUR VIEW: AUD soared to a high of 0.7095 last Friday. When it was at 0.7080 yesterday, we indicated that “while further AUD strength is not ruled out, overbought conditions suggest 0.7100 could be just out of reach.” The anticipated AUD strength exceeded our expectation as it popped to a high of 0.7129 before retreating to close at 0.7104 (+0.32%). Despite the retreat, AUD strength appears to be intact. That said, overbought conditions suggest any advance is likely to be contained within a range of 0.7090/0.7130."

"1-3 WEEKS VIEW: We have held the view that “the risk for AUD is on the upside” since early this month. Yesterday (17 Aug, spot at 0.7080), we reiterated our view, indicating that “the risk for AUD remains on the upside but note that AUD must surpass 0.7100 before a move to 0.7120 can be expected.” We did not expect AUD to quickly break above both 0.7100 and 0.7120, as it popped to a high of 0.7129 before retreating. The risk remains on the upside, and the next level to monitor is 0.7150. Overall, only a breach of 0.7070 (‘strong support’ level was at 0.7050 yesterday) would mean that the upside risk has faded."

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