UOB economists Quek Ser Leang and Lee Sue Ann highlight that AUD/USD extended beyond the expected range to 0.7272, but near-term momentum still looks modest. Intraday, further gains are possible yet seen unlikely to reach 0.7280, with support at 0.7245 and 0.7230. Over 1–3 weeks, a sustained move above 0.7280 is required to open 0.7300, while strong support stands at 0.7215.

Aussie capped below key resistance

"24-HOUR VIEW: Yesterday, we expected AUD to “trade in a range between 0.7215 and 0.7255.” Instead of trading in a range, AUD rose to a high of 0.7272. Further AUD strength is not ruled out, but it does not appear to have sufficient momentum to reach 0.7280. Support is at 0.7245; a breach of 0.7230 would indicate that AUD is more likely to range-trade instead of strengthening further."

"1-3 WEEKS VIEW: Two days ago (12 May, spot at 0.7235), we highlighted that “while the firm underlying tone suggests AUD could edge higher, any advance is unlikely to threaten the major resistance at 0.7280.” Yesterday, AUD rose to a high of 0.7272. Upward momentum has increased, but not significantly. From here, AUD must break and close above 0.7280 before a move to 0.7300 can be expected. The likelihood of AUD closing above 0.7280 will remain intact as long as 0.7215 (‘strong support’ level previously at 0.7180) is not breached."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)