AUD Rebounds, But UOB Sees Lower Path Against USD

According to United Overseas Bank's (UOB) Quek Ser Leang, the Australian Dollar has rebounded after an oversold slide against the US Dollar. The AUD/USD pair is now expected to consolidate within a short-term range of 0.7095 and 0.7130.

Despite this near-term consolidation, the bank's analysis still suggests a move towards 0.7050 over the next 1-3 weeks. However, any upside would be capped at 0.7140, which is seen as strong resistance.

The AUD had fallen sharply to a low of 0.7075 two days ago, but rebounded strongly to 0.7128 after Quek Ser Leang's warning that the decline appeared overdone. The bank's analysis remains bearish, with a potential retest of 0.7277 on the longer-term outlook.

The AUD closed 0.35% higher at 0.7112 yesterday, but UOB maintains its view as long as it holds below 0.7140. A breach of this level would indicate that the decline from early this week has stabilized.