AUD Upside Risk Remains Intact Despite Recent Dip

UOB analysts Quek Ser Leang and Lee Sue Ann believe that despite a recent dip, the Australian Dollar (AUD) still holds an upside risk against the US Dollar (USD). They note that after the Reserve Bank of Australia left its cash rate at 4.35%, the AUD/USD pair rebounded to close around 0.7062.

In their analysis, they see a slight increase in upward momentum for the AUD, which suggests it could edge higher. However, they caution that a sustained break above 0.7075 is unlikely based on current momentum.

According to UOB's analysts, support levels are at 0.7050 and 0.7040, followed by the 'strong support' level of 0.7025.

Looking ahead, they see potential for the AUD to rise toward 0.7100 if it closes above 0.7075 within the next 1-3 weeks.