United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann notes AUD/USD rebounded strongly to close at 0.7047 after an overdone retreat, with short‑term momentum building. Intraday, they see scope for further gains but expect resistance at 0.7060/0.7075, while holding above 0.7020 is needed to sustain momentum. On a 1–3 week view, upside risk persists but advances are expected to face firm resistance at 0.7075.

Short term gains facing firm ceiling

"24-HOUR VIEW: After AUD retreated sharply to a low of 0.6984 two days ago, we highlighted yesterday that “the sharp retreat appears to be overdone, and instead of continuing to decline today, AUD is more likely to trade in a range between 0.6980 and 0.7030.” Instead of trading in a range, AUD rose to a high of 0.7049 before closing on a firm note at 0.7047 (+0.67%). Upward momentum is building, and AUD could continue to rise today. Based on the prevailing momentum, any advance is unlikely to break above the major resistance at 0.7075 (there is another resistance level at 0.7060). To sustain the build-up in momentum, AUD must not break below 0.7020, with minor support at 0.7030."

"1-3 WEEKS VIEW: Two days ago (03 Aug, spot at 0.7040), we indicated that “while the risk for AUD remains on the upside, any advance is expected to face firm resistance at 0.7075.” We will continue to hold the same view as long as the ‘strong support’ at 0.6990 (level previously at 0.6980) continues to hold."

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