AUD/USD: A test of 0.6800 now emerges on the horizon – UOB

In opinion of FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang, AUD/USD’s downside could visit the 0.6800 region in the next weeks.

Key Quotes

24-hour view: “Our expectations for AUD to ‘trade between 0.6900 and 0.6995’ yesterday were incorrect as it cracked 0.6900 and plunged to 0.6829 before rebounding. The rapid decline appears to be overdone but AUD could retest the 0.6830 level. The next support at 0.6800 is unlikely to come under threat. Resistance is at 0.6900 followed by 0.6925.”

Next 1-3 weeks: “Yesterday (12 May, spot at 0.6930), we highlighted that AUD has close below 0.6900 within these 1 to 2 days or the chance for a sustained decline would diminish quickly. AUD subsequently plummeted to 0.6829 before rebounding to close at 0.6858 (-1.20%). The boost in downward momentum suggests AUD could weaken to 0.6800. The downward pressure is intact as long as AUD does not move above 0.6960 (‘strong resistance’ level).”