UOB strategists Quek Ser Leang and Lee Sue Ann see AUD/USD consolidating after a brief dip to 0.7209, with intraday trade expected between 0.7215 and 0.7255.
The firm underlying tone suggests the pair could edge higher in the coming 1–3 weeks, though gains are seen limited below 0.7280
A break under 0.7180 would instead signal a broader range-trading environment. Aussie Dollar supported but constrained “24-HOUR VIEW: When AUD was at 0.7235 yesterday, we highlighted that “there is a chance for AUD to test 0.7220.” We also highlighted that “based on the momentum, AUD is unlikely to threaten the 0.7205 low.” We were not wrong, as AUD subsequently fell to a low of 0.7209 and then recovered to close 0.14% lower at 0.7240. Downward momentum has eased with the recovery, and today, we expect AUD to trade in a range, most likely between 0.7215 and 0.7255” “1-3 WEEKS VIEW: We continue to hold the same view as yesterday (12 May, spot at 0.7235).
As highlighted, “while the firm underlying tone suggests AUD could edge higher, any advance is unlikely to threaten the major resistance at 0.7280.” However, if AUD breaks below 0.7180 (no change in ‘strong support’ level), it would mean that AUD is more likely to trade in a range instead of edging higher.” Author