UOB expects the Australian Dollar to consolidate between 0.6895 and 0.6945 in the near term, with a neutral outlook for the next few weeks.
The Australian Dollar’s recent surge to 0.6943 against the USD was not sustained, leading UOB to forecast consolidation between 0.6895 and 0.6945 in the short term. The pair closed at 0.6923, up 0.42% after an abrupt but unsustained rally during the New York session.
UOB revised its outlook from negative to neutral earlier this week, citing fading downward momentum. The bank now expects AUD/USD to trade within a broader range of 0.6870 to 0.6980 over the next one to three weeks, despite a longer-term bearish bias.
The sharp rise to 0.6943 appears overdone, reducing the likelihood of further near-term gains. UOB maintains its neutral stance for the medium term, with no immediate catalyst for a breakout.