Further decline in AUD/USD is likely in the next weeks along with a probable move to the 0.7260 level, suggested FX Strategists at UOB Group.
24-hour view: “Yesterday, we expected AUD to ‘trade sideways within a 0.7340/0.7380 range’. AUD subsequently rose to 0.7373 before staging a sharp and rapid decline to a low of 0.7323. While oversold, the decline in AUD could dip below 0.7300. The major support at 0.7260 is not expected to come under threat for today. Resistance is at 0.7345 followed by 0.7360.”
Next 1-3 weeks: “We have held the same view since late last week where AUD is still consolidating but a daily closing below 0.7320 would indicate the start of a deeper pullback. While AUD did not close below 0.7320 (close of 0.7323 in NY), the improvement in downward momentum suggests that AUD is likely to trade with a downward bias towards 0.7260. On the upside, a breach of 0.7380 would indicate that the current downward pressure has eased.”
Read More: Potential move to 0.7260 in the offing – UOB