UOB strategists Quek Ser Leang and Lee Sue Ann note AUD/USD gapped down to 0.7205 before rebounding to close near 0.7250, with intraday risks skewed toward a retest of 0.7220 while 0.7205 is expected to hold. Over 1–3 weeks, they see scope for the pair to edge higher but capped below 0.7280.

Aussie Dollar trades inside defined bands

"24-HOUR VIEW: On the open yesterday, AUD gapped down to a low of 0.7205 and then staged a strong recovery to 0.7260. AUD closed largely unchanged at 0.7250 (+0.04%). There has been a slight increase in downward momentum, and there is a chance for AUD to test 0.7220. Based on the momentum, AUD is unlikely to threaten the 0.7205 low. To sustain the mild momentum, AUD must hold below 0.7260, with minor resistance at 0.7250."

"1-3 WEEKS VIEW: After soaring to a high of 0.7277 last Wednesday, AUD has traded mostly in a range. While the firm underlying tone suggests AUD could edge higher, any advance is unlikely to threaten the major resistance at 0.7280. On the downside, a break of 0.7180 would indicate that the current mild upward pressure has eased."

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