Australian Dollar Consolidation Play: AUD/USD Positioned Between 0.6685-0.6730 Support Levels

2026-01-12 09:53:22

Abstract generation in progress

According to analysis from UOB Group’s FX strategists Quek Ser Leang and Peter Chia, the Australian Dollar is expected to stabilize within a defined trading band rather than embarking on a decisive directional move. The AUD/USD pair is projected to consolidate between 0.6685 and 0.6730 in the near term, with broader range-bound activity likely to persist between 0.6640 and 0.6730 over the coming weeks.

Current Technical Setup: Short-term Consolidation Expected

24-Hour Outlook

Yesterday’s trading action in AUD/USD revealed conflicting signals. The pair initially dipped to 0.6663 following expectations of a probe toward 0.6670 when it began the Asian session from 0.6685. However, the anticipated decline toward the 0.6640 support floor did not materialize as predicted. Instead, the currency pair staged a sharp reversal, rallying to a high of 0.6719. This sudden bounce highlights a key technical reality: the buying pressure lacks sufficient conviction to sustain a meaningful advance. The UOB analysts conclude that today’s trading is more likely to oscillate within the upper range of 0.6685 to 0.6730, with neither breakout scenario appearing imminent.

Medium-Term Perspective (1-3 Weeks)

The longer-term picture reinforces this consolidation thesis. Although the Australian Dollar reached a 14-month peak of 0.6727 recently, the subsequent inability to build on those gains signals weakening momentum. Market technicians have flagged overbought conditions developing at elevated levels, which typically precedes corrective phases or sideways consolidation. The renewed bullish push witnessed yesterday through the rebound to 0.6719 does suggest some residual buying interest, yet this is insufficient to validate a sustained uptrend continuation. UOB Group maintains its constructive assessment that AUD/USD will likely remain range-bound, predominantly fluctuating within the 0.6640-0.6730 band until clearer directional signals emerge.

The key levels to monitor remain 0.6685 on the lower end and 0.6730 on the upper end, with the broader support zone anchored at 0.6640.

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