According to United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann, the AUD/USD currency pair has retreated after reaching a high of 0.7197, with intraday movements now expected to remain within the 0.7130–0.7180 range [1]. The analysts note that while the recent sharp rise in AUD/USD appeared excessive, there were no immediate signs of a pause at the time, allowing the pair to test significant resistance at 0.7190 before pulling back [1].
Despite the current pullback, UOB maintains that the broader outlook for AUD/USD remains tilted to the upside over the next 1–3 weeks, provided that the strong support level at 0.7085 is not breached [1]. The strategists emphasize that a daily close above 0.7190 would be required to open the way for a move towards 0.7220 [1]. However, they also caution that, given the deeply overbought conditions, a continued rise above the recent highs appears unlikely in the immediate term [1].
In summary, UOB expects near-term consolidation for AUD/USD, with any declines likely to be contained within the 0.7130–0.7180 range, and the broader upside risk remaining intact as long as the 0.7085 support holds [1].
CONCLUSION
UOB strategists see the recent AUD/USD pullback as a consolidation within a broader upside risk scenario. The pair is expected to trade in a narrow range near-term, with a bullish outlook maintained unless the 0.7085 support is breached.