The Australian dollar shows signs of cautious strength against the US dollar, according to United Overseas Bank currency strategist Quek Ser Leang. In the immediate term, AUD/USD is expected to trade within a tight 0.6915 to 0.6950 range as momentum indicators suggest subdued movement. However, the outlook shifts over the coming one to three weeks, with technical analysis pointing to tentatively building upward momentum that increases the probability of a breakout above the 0.6980 resistance level. The 0.6900 mark has emerged as a critical support floor for the pair. Traders should monitor whether the Aussie can sustain gains above current levels, as any breach of 0.6980 could trigger further upside positioning. The forecast matters for currency traders positioning in AUD pairs and those managing exposure to commodity currencies amid ongoing global economic uncertainty.
FXnCO Insight
Watch for a sustained break above 0.6980 as a technical trigger for long AUD/USD positions, but keep stops tight below 0.6900 support.
Source: FXStreet