AUD Strength Remains Intact Despite Overbought Conditions

The Australian Dollar continues to show strength against the US Dollar, according to UOB's analysis. The pair reached a high of 0.7129 last week before retreating to close at 0.7104. Despite this retreat, overbought conditions suggest that any further advance will be contained within a range of 0.7090-0.7130.

UOB's Quek Ser Leang and Lee Sue Ann highlight that the risk remains on the upside for the AUD/USD. They anticipate that if the pair surpasses 0.7100, it could move towards 0.7120, but note that this is not expected to happen quickly.

The next level to monitor is 0.7150, according to UOB's analysts. Only a breach of 0.7070 would indicate that the upside risk has faded.