AUD/USD Eyes 0.7200 Resistance as Momentum Improves

Market analysts at United Overseas Bank (UOB) are watching the Australian Dollar's performance against the US Dollar, specifically its resistance level of 0.7200. The AUD/USD exchange rate has been consolidating slightly higher, with a closing price of 0.7165.

Quek Ser Leang and Lee Sue Ann from UOB note that short-term momentum is improving for the Australian Dollar, but they caution that any advance will likely stay within a tight intraday band of 0.7145 to 0.7180. If the AUD/USD pair breaks above 0.7180, it's unlikely to reach 0.7200.

The analysts highlight that the bullish view for the Australian Dollar is contingent on the pair holding above a nearby strong support zone at 0.7120.