Australian Dollar: Gradual Upside Within Capped Range Against US Dollar – UOB

The Australian Dollar continues to hold a constructive bias against the US Dollar, with AUD/USD trading around 0.7220. UOB expects the pair to edge higher over the next 1–3 weeks, but sees the advance remaining contained within the 0.7160–0.7240 range. AUD/USD has struggled to build strong upside momentum after reaching recent highs. The pair is currently consolidating near 0.7220, with short-term price action remaining relatively quiet. UOB expects AUD/USD to trade between 0.7200 and 0.7235 in the near term. The key upside level is 0.7240. A sustained break above this resistance could strengthen the bullish structure and bring the 0.7277 year-to-date high back into focus. However, failure to clear 0.7240 could keep the pair trapped inside its broader range. On the downside, 0.7200 is the first support to watch, followed by the stronger 0.7160 area. A break below 0.7160 would weaken the near-term bullish outlook and increase the risk of a deeper correction. MarketMindFX View: The Aussie remains technically constructive, but traders should treat the current move as gradual upside rather than a confirmed breakout. US inflation data, Federal Reserve expectations, RBA policy expectations and overall risk sentiment could determine whether AUD/USD eventually breaks above 0.7240. Key Levels: Support: 0.7200, 0.7160 Resistance: 0.7235, 0.7240 Major upside target: 0.7277 The broader market backdrop remains supportive for the Australian Dollar, although US yields and upcoming inflation data could limit gains. AUD/USD was recently holding above 0.7200 while traders awaited US PPI and CPI data. :contentReference[oaicite:0]{index=0}