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BitcoinWorld AUD/USD Holds Above 0.7120 Support, But Downside Risks Persist: UOB The Australian dollar continues to trade on the back foot against its US counterpart, with analysts at United Overseas Bank (UOB) flagging persistent downside pressure. Currency strategists Quek Ser Leang and Lee Sue Ann note that the AUD/USD pair is hovering just above the key support level of 0.7120, following recent declines. Key support level under threat According to the UOB analysts, the lingering downside momentum suggests that a clear break below 0.7120 could open the path toward the next support zone at 0.7095. This level represents a critical floor for the pair, and a sustained move below it would signal further weakness in the Australian dollar. On the upside, immediate resistance is seen in the 0.7150–0.7165 range, which could cap any short-term recovery attempts. What’s driving the pressure on the Aussie? The Australian dollar has been under pressure from a combination of factors, including a broadly stronger US dollar, shifting expectations around US Federal Reserve monetary policy, and persistent concerns about China’s economic recovery — a key driver of Australian commodity exports. The Reserve Bank of Australia’s (RBA) recent dovish stance, with interest rates remaining on hold, has also reduced the currency’s yield advantage. Implications for traders and investors For forex traders, the 0.7120 level is a critical technical threshold to watch. A break below could trigger further selling, potentially targeting the 0.7095 level and beyond. Conversely, if the support holds and the pair manages to reclaim the 0.7150–0.7165 resistance zone, it could signal a temporary stabilization. Investors with exposure to Australian assets should monitor these levels closely, as further AUD weakness could impact returns on Australian equities and bonds when measured in foreign currency terms. Conclusion The AUD/USD pair remains at a pivotal juncture, with UOB’s analysis highlighting the importance of the 0.7120 support level. A breakdown could accelerate losses, while a bounce may offer only limited relief given the prevailing bearish momentum. Market participants should stay attuned to upcoming US economic data and RBA commentary for further directional cues. FAQs Q1: What is the current AUD/USD support level according to UOB? The key support level is at 0.7120. A clear break below this could lead to a move toward 0.7095. Q2: Why is the Australian dollar under pressure? The AUD is facing headwinds from a stronger US dollar, expectations of higher US interest rates, and concerns about China’s economic slowdown, which affects Australian exports. Q3: What is the resistance level for AUD/USD? UOB identifies immediate resistance in the 0.7150–0.7165 range. A break above this zone could signal a short-term recovery. This post AUD/USD Holds Above 0.7120 Support, But Downside Risks Persist: UOB first appeared on BitcoinWorld .