AUD/USD Consolidating Within 0.6685-0.6730 Band as Momentum Stalls – UOB Analysis

PensionDestroyer · 2026-01-20T17:14:55+00:00

The Australian Dollar's recent strength is unstable, with forecasts suggesting it will trade within the 0.6640-0.6730 range. Analysts expect mixed sentiment and a range-bound pattern in the near term, reflecting challenges in sustaining upward momentum.

PensionDestroyer

2026-01-20 17:14:55

Abstract generation in progress

Australian Dollar sentiment remains mixed as recent strength fails to establish sustainable gains, with analysts at UOB Group flagging a consolidation pattern between 0.6685 and 0.6730 in the near term. The broader trading range for AUD/USD is expected to hold between 0.6640 and 0.6730 over the medium term.

Technical Setup Suggests Sideways Movement Ahead

The AUD/USD pair experienced a sharp intraday recovery yesterday, rebounding from a low of 0.6663 to reach 0.6719, but the rally lacked sufficient strength to signal a continued uptrend. After touching a 14-month high of 0.6727 late last month, the Australian Dollar has faced headwinds, with upward momentum gradually fading.

According to FX analysts Quek Ser Leang and Peter Chia of UOB Group, the current buying pressure is unlikely to sustain a meaningful advance. Instead, they anticipate AUD/USD will oscillate within the 0.6685-0.6730 range over the next 24 hours, reflecting the currency’s struggle to build on previous gains.

Support and Resistance Levels in Focus

The 0.6670 level represents an important intraday support marker, though a decisive break below this point remains possible. However, further downside is unlikely to reach the major support floor at 0.6640 based on current technical conditions.

On the upside, the 0.6730 level continues to act as a near-term ceiling, with overbought conditions limiting the potential for a rapid ascent. The previous 14-month high near 0.6727 demonstrated the difficulty in sustaining momentum at these elevated levels.

Medium-Term Outlook: Range-Bound Trading Expected

Looking ahead to the 1-3 week horizon, the technical picture remains unchanged despite yesterday’s rebound. Upward momentum has eased from earlier in January, and combined with extended technical conditions, AUD/USD appears poised for range-bound consolidation rather than directional movement.

UOB Group maintains its view that the Australian Dollar will likely trade within the 0.6640-0.6730 corridor in the coming weeks, with the 0.6685-0.6730 band representing the more likely trading zone in the near term.

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