AUD/USD: Limited recovery remains within wider trading band – UOB

Australian Dollar's Upside Appears Limited

Analysts Quek Ser Leang and Lee Sue Ann from United Overseas Bank observed that although AUD/USD bounced back to 0.6938, the recovery lacked strength. In the short term, they expect the currency pair to fluctuate between 0.6890 and 0.6940, while over the next one to three weeks, it may move within a broader range of 0.6835 to 0.6955.

Short-Term Outlook

• The Australian Dollar is unlikely to sustain further gains and is expected to remain confined between 0.6890 and 0.6940.
• Over the coming weeks, trading is projected to occur within the 0.6835 to 0.6955 band.

Technical Analysis

Overall, the technical indicators suggest a downward trend for AUD/USD. If the pair falls below the 0.6850/0.6870 support levels, it could pave the way for a drop toward 0.6765.