AUD: Upside Risk Against USD Hinges on 0.7150 - UOB

AUD/USD is trading around 0.71187, after previously retesting recent highs near the 0.7130 level, but UOB analysts Quek Ser Leang and Lee Sue Ann believe that momentum follow-through is insufficient, and further upside remains challenged.

**Upside Target Focused on 0.7150 Level**

UOB notes that the upside risk target for AUD/USD points to 0.7150. Despite the pair's relatively firm stance after jumping to 0.7129 earlier, overbought conditions may limit further intraday gains, with the short-term trading range expected between 0.7090 and 0.7130. This implies that whether 0.7150 can be effectively broken is a key level to watch for determining the continuation of the uptrend.

**Insufficient Momentum Constrains Breakout Strength**

Analysts emphasize that momentum did not significantly strengthen when the Aussie retested highs near 0.7130. In recent price action, the pair has lacked sustained buying follow-through after approaching key resistance, reducing the reliability of breakout attempts. Market signals suggest that if it fails to decisively close above 0.7150 on volume, the Aussie may continue to maintain a high-level consolidation pattern rather than embark on a one-sided rally.

**Short-Term Support and Risk Balance**

While focusing on upside resistance, UOB's previously set short-term support zone is near 0.7090. As long as the pair holds above this level, the upside risk framework remains intact; conversely, a pullback below this support would warrant a reassessment of the short