UOB’s Quek Ser Leang and Lee Sue Ann report that AUD/USD broke above a cited resistance but the move lacked follow-through, leaving the pair likely to consolidate. They have shifted to a neutral stance, viewing recent price action as range-bound. Over the medium term, however, their broader technical picture still points to downside risk if key supports give way.

Aussie consolidates after brief breakout

"24-HOUR VIEW: Following the sharp rise in AUD in the early Asian session yesterday, we indicated that “the rapid rise has scope to extend, but a clear break of the major resistance at 0.7175 is unlikely.” However, AUD broke above 0.7175 as it rose to a high of 0.7182. The advance lacks momentum, and instead of continuing to rise today, AUD is more likely to trade in a range between 0.7150 and 0.7185."

"1-3 WEEKS VIEW: We revised our view from negative to neutral yesterday (25 May, spot at 0.7150). We noted that “downward momentum has faded,” and highlighted that “we are neutral on AUD now, and we view the current price movements as part of a range-trading phase between 0.7100 and 0.7215.” Our view remains unchanged."

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