Australian Dollar: Upside scope toward 0.7060 cap against US Dollar – UOB

UOB’s Quek Ser Leang and Lee Sue Ann note AUD/USD has shifted into a slightly higher intraday range after touching 0.7055 in early Asia, with scope to test 0.7060 while major resistance at 0.7070 is seen out of reach and support at 0.7020. On a 1–3 week view, they warn that slowing momentum means a break below 0.6995 would negate prospects for 0.7070 coming into view.

Australian Dollar's gradual rise faces nearby resistance

"24-HOUR VIEW: We expected AUD to “range-trade between 0.7005 and 0.7035” yesterday. AUD then traded within a higher range of 0.7010/0.7040 and closed at 0.7025 (+0.12%). During the early Asian session today, AUD appeared to have popped to a high of 0.7055. Upward momentum is building, but not significantly. From here, there is scope for AUD to test 0.7060. The major resistance at 0.7070 is likely out of reach. Support is at 0.7020."

"1-3 WEEKS VIEW: Following our positive AUD view from the middle of last week, we highlighted yesterday (27 Oct, spot at 0.7020) that “upward momentum is starting to slow, and a break below 0.6995 (‘strong support’ level) would indicate that 0.7070 is not coming into view.” Although AUD popped to a high of 0.7055 earlier, it remains to be seen whether 0.7070 is coming into view."

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