AUD Rebounds from Dips, Eyes 0.7200 Target

The Australian Dollar (AUD) has pulled back from its recent dip to 0.7122 against the US Dollar, according to UOB's Quek Ser Leang and Lee Sue Ann. The pair rebounded strongly to reach a high of 0.7176, leaving intraday price action in a range of 0.7140-0.7180.

Downward momentum is easing, with a break above 0.7190 confirming that 0.7120 is out of reach. On a 1-3 month horizon, the AUD/USD pair is seen poised to clear 0.7200 and target the year-to-date high near 0.7280.

UOB's analysts had previously expected the AUD to 'edge lower', but noted that the major support at 0.7120 was likely out of reach. However, they did not anticipate the subsequent strong rebound.