AUD/USD Hits 0.7069, Faces Firm Resistance at 0.7075

AUD/USD briefly tested 0.7069 before retreating sharply to 0.6984, according to Quek Ser Leang of United Overseas Bank (UOB). The sharp retreat appears overdone, and instead of continuing to decline, AUD is expected to trade in a range between 0.6980 and 0.7030.

The Australian Dollar's upside risk remains capped by the resistance at 0.7075. On a 1-3 week view, any advance is likely to face firm resistance at this level.

Quek Ser Leang notes that while upward momentum has built in AUD/USD, it has not significantly increased. The risk remains on the upside, but a breach of 0.6980 would ease upside pressure.