United Overseas Bank’s (UOB) Quek Ser Leang reports AUD/USD has stalled after last week’s sharp rise, with a tentative build-up in downside momentum pointing to a limited dip toward 0.6910 intraday. For the next 1–3 weeks, the bank stays neutral, expecting consolidation between 0.6870 and 0.6980. On a 1–3 month horizon, AUD/USD remains negative, with focus on 0.6835 and then 0.6707.

Australian Dollar consolidates after surge

"24-HOUR VIEW: AUD soared to a high of 0.6943 last Thursday. On Friday, we indicated that “the sharp rise appears to be overdone, and AUD is unlikely to rise much further.” We also indicated that AUD “is more likely to consolidate between 0.6895 and 0.6945.” AUD subsequently traded within a range of 0.6911/0.6949 before settling at 0.6939 (+0.23%). Despite the relatively quiet price action, there has been a tentative build-up in downward momentum. Today, the bias for AUD is tilted to the downside, but given the lacklustre momentum, any decline is likely limited to a test of 0.6910. Resistance is at 0.6945, followed by 0.6955."

"1-3 WEEKS VIEW: Our most recent narrative was from last Wednesday (01 Jul, spot at 0.6915), when we indicated that AUD “is likely to trade between 0.6870 and 0.6980 for the time being.” We continue to hold the same view."

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