UOB’s strategists Quek Ser Leang and Lee Sue Ann note AUD/USD is consolidating after failing to extend gains beyond 0.7200, trading instead between 0.7151 and 0.7195 and closing near 0.7183. They expect a 0.7155–0.7200 intraday band, while the 1–3 week view allows for further upside toward significant resistance at 0.7225, provided support at 0.7140 holds.

Aussie consolidates under 0.7225

"24-HOUR VIEW: After AUD soared to a high of 0.7200 two days ago, we highlighted the following yesterday: “While strong momentum suggests further AUD strength, conditions are deeply overbought, and AUD may not reach the significant resistance 0.7225, with minor resistance at 0.7210.” Our assessments were incorrect, as instead of strengthening further, AUD traded between 0.7151 and 0.7195. AUD closed largely unchanged at 0.7183 (-0.04%). The price movements appear to be part of a consolidation phase. Today, we expect AUD to trade between 0.7155 and 0.7200."

"1-3 WEEKS VIEW: We highlighted yesterday (28 Apr, spot at 0.7190) that AUD “could continue to rise, any advance is expected to face significant resistance at 0.7225.” We will continue to hold the same view as long as 0.7140 (no change in ‘strong support’ level) is not breached."

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