Australian Dollar: Further upside against US Dollar capped at 0.7015 – UOB

AUD/USD’s outperformance on Monday followed China’s stronger Q3 GDP reading, with the pair ending the session at 0.6980, notes United Overseas Bank’s (UOB) Quek Ser Leang. While the Australian Dollar could test 0.7000 in the near term, a sustained move above that level and the major resistance at 0.7015 is considered unlikely. Despite a bearish EMA crossover, UOB anticipates trading within a 0.6915–0.7015 range over the coming weeks.

Can the Australian Dollar clear nearby resistance?

"24-HOUR VIEW: We expected AUD to “edge higher” yesterday, but we indicated that it “should stay within a 0.6940/0.6985 range.” However, AUD rose more than expected to 0.6993 before closing at 0.6980 (+0.51%). Upward momentum is increasing, albeit not significantly. Today, there is scope for AUD to test 0.7000. A clear break above this level is unlikely. The major resistance at 0.7015 is also unlikely to come into view. Support is at 0.6965, followed by 0.6950."

"1-3 WEEKS VIEW: Our update from yesterday (19 Oct, spot at 0.6965) remains valid. As highlighted, AUD “appears to have moved into a range-trading phase,” and “for the time being, we expect it to trade between 0.6915 and 0.7015.” "

(An editor reviewed this article, which was produced with assistance from an Artificial Intelligence tool. Find out more.)