Australian Dollar Consolidates Near Resistance at 0.72

The Australian Dollar (AUD) has entered a short-term consolidation phase after its recent sharp rise. According to UOB, Quek Ser Leang and Lee Sue Ann note that AUD/USD is currently trading between 0.7135 and 0.7170. The pair broke above 0.7150 last week, but its momentum may be easing.

UOB highlights 0.7200 as a major resistance level for the AUD/USD pair, while strong support at 0.7105 needs to hold to sustain the bullish momentum over the coming weeks. Despite the consolidation phase, the broader uptrend remains intact, with no change in view from UOB.

Last Thursday, UOB noted that further AUD strength was not ruled out if it broke clearly above 0.7150. After breaking this level, they highlighted yesterday that AUD strength remains intact and that 0.7200 is the key level to watch. To maintain momentum, AUD must hold above 0.7105.