The Australian Dollar (AUD) has entered a consolidation phase against the US Dollar (USD) following a recent sharp decline, according to United Overseas Bank’s (UOB) analyst Quek Ser Leang [1]. After an impulsive drop, the AUD/USD pair is now trading within a short-term range between 0.6880 and 0.6920, with Friday’s session closing 0.30% lower at 0.6890 [1]. The price action is described as part of a range-trading phase, and UOB expects this pattern to persist in the near term, with the pair likely to remain between 0.6880 and 0.6920 [1].
UOB’s medium-term outlook remains cautious. The bank turned negative on the AUD on June 18, when the currency was at 0.7025, and anticipated a drop toward the month-to-date low near 0.6980 [1]. The subsequent plunge has led to a reassessment, with the major weekly support level identified at 0.6835 [1]. While the recent decline suggests further downside risk, UOB notes that downward momentum is starting to ease. A break above 0.6940 would indicate that the 0.6835 support is unlikely to be tested in the current phase of weakness [1].
In the immediate term, 0.6860 is seen as a firm support level, while resistance is noted at 0.6940, with a stronger resistance previously at 0.6950 [1]. No specific market reactions or analyst opinions beyond UOB’s technical outlook are mentioned in the article [1].
CONCLUSION
The Australian Dollar is consolidating after a sharp fall, with UOB highlighting ongoing downside risks but noting that bearish momentum is easing. Key support and resistance levels are in focus, and a break above 0.6940 could signal stabilization. Market participants are advised to monitor these technical thresholds for further direction.