The downside pressure in AUD/USD appears to have subsided and the pair could now navigate between 0.6860 and 0.7000 in the next weeks, commented FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.
24-hour view: “Yesterday, we expected AUD to ‘trade sideways within a range of 0.6900/0.6960’. AUD subsequently popped to a high of 0.6965 before dropping quickly to a low of 0.6905. Downward momentum has improved somewhat and the risk for AUD today is tilted to the downside. As downward momentum is not that strong for now, any decline in AUD is unlikely to break the major support at 0.6860 (minor support is at 0.6885). Resistance is at 0.6925 followed by 0.6945.”
Next 1-3 weeks: “We continue to hold the same view as yesterday (28 Jun, spot at 0.6920). As highlighted, the recent mild downward pressure has eased and AUD is likely to trade between 0.6860 and 0.7000 for now.”