UOB: Aussie Dollar Holds Upside Risk Above Key Support Level

Market analysts at United Overseas Bank (UOB) maintain that there's still upside risk for the Australian Dollar against the US Dollar, as long as it holds above a key support level. According to UOB's Quek Ser Leang and Lee Sue Ann, the AUD/USD is consolidating between 0.7050 and 0.7075 after a brief spike to 0.7091 failed to build momentum.

The analysts note that if the Australian Dollar stays above its strong support at 0.7025, the upside risk will remain intact. They also point out that if AUD closes above 0.7075, it could continue to rise towards 0.7100 and a broader resistance zone at 0.7075/0.7090.

In their analysis, UOB's team highlights that while upward momentum is slowing down, only a breach of 0.7025 would indicate that the upside risk has faded. The analysts continue to expect AUD to trade in a range, likely between 0.7050 and 0.7075.