AUD/USD Rebounds, But Longer-Term Outlook Still Favors Break Above 0.72

AUD/USD has corrected from its recent high of 0.7208 but is rebounding, according to United Overseas Bank's (UOB) analysts Quek Ser Leang and Lee Sue Ann.

The pair is expected to trade within a narrow range between 0.7155 and 0.7180, although the medium-term technical picture still favors a break above 0.7200 toward the year-to-date high near 0.7280.

The analysts believe that the month-long Australian Dollar (AUD) strength has ended, opening scope for a deeper pullback toward 0.7120.