AUD/USD: Short-Term Pullback Within Broader Uptrend – UOB

UOB analysts Quek Ser Leang and Lee Sue Ann note that AUD/USD is rebounding after pulling back from the 0.7208 level, but the month-long strength has temporarily stalled. They expect the pair to trade within a 0.7155-0.7180 range intraday, with a further decline opening the door toward 0.7120.

**Short-Term Momentum Fades, Pullback Pressure Builds**

The analysts suggest that the previous upward momentum in the Aussie has clearly weakened, paving the way for a short-term correction. According to UOB’s view, if the pair breaks below the immediate support, the next notable downside target sits near 0.7120. At the time of writing, AUD/USD is trading around 0.71544, within the expected daily range.

**Medium-Term Outlook Unchanged, Bulls Retain Control**

Despite the near-term headwinds, UOB remains constructive on the medium-term outlook for the Australian dollar. The analysts emphasize that the broader technical structure still favors the upside, and the pair retains the potential to reclaim the 0.7200 handle. A decisive move above that level could build enough momentum to challenge the year-to-date high near 0.7280. This suggests the current pullback is viewed as a normal correction within an uptrend, rather than a reversal.