AUD Edges Higher, But Limited Gains Ahead for Aussie Dollar

UOB's analysts Quek Ser Leang and Lee Sue Ann believe that the Australian Dollar (AUD) is likely to rise against the US Dollar (USD), but gains will be limited. In their analysis, they note that AUD/USD has been trading within a tight range of 0.7205-0.7238 over the past two days. They expect this trend to continue in the next few days.

The analysts maintain their view from last Friday, when they predicted that AUD could edge higher but stay within a range of 0.7160-0.7240 for the next 1-3 weeks. Despite some slight movement yesterday, momentum indicators remain mostly flat, and today's trading is expected to be similarly range-bound.

While the analysts see potential for further gains in the longer term, with AUD/USD potentially rising higher over a multi-week view, they caution that a retest of the year-to-date high of 0.7277 may not occur immediately.