UOB analysts see limited downside for the Australian dollar near term, with a break above 0.6980 still possible despite recent pullback.
The Australian dollar pulled back from recent highs after failing to breach resistance at 0.6980 against the US dollar. UOB’s Quek Ser Leang notes intraday downside is likely contained within a 0.6900–0.6950 range, with weak downward momentum limiting further declines.
AUD/USD rose to 0.6955 earlier this week but retreated sharply to 0.6921, defying expectations of a test at 0.6970. Despite the setback, the 1–3 week outlook remains tentatively bullish, with rising odds of a break above 0.6980 if support at 0.6900 holds. The longer-term view stays negative below 0.6835.
Analysts maintain that upward momentum is building, though the recent retreat suggests caution. The pair’s range-bound behavior persists, with key levels closely watched for directional signals.