AUD Set for Deeper Pullback Before Broader Uptrend Resumes

According to United Overseas Bank's (UOB) analysts Quek Ser Leang and Lee Sue Ann, the Australian Dollar (AUD) has experienced a short-term pullback but is still part of a broader uptrend against the US Dollar. The AUD/USD exchange rate corrected from 0.7208 before rebounding, with intraday trade expected between 0.7155 and 0.7180.

The analysts believe that the month-long strength in the AUD has ended, opening up scope for a deeper pullback toward 0.7120. However, they still see a medium-term technical picture favoring a break above 0.7200 toward the year-to-date high near 0.7280.

Last Friday, the AUD rose to 0.7208 before pulling back sharply to close at 0.7158 (-0.50%). The analysts noted that while the increase in momentum suggests the AUD could rebound further, it should stay within a 0.7155/0.7180 range.