AUD/USD risks further downside – UOB

FX Strategists at UOB Group have not ruled out further pullbacks in AUD/USD in the near term.

Key Quotes

“We highlighted the downside risk in AUD on Monday and further warned yesterday that “a clear break below 0.7585/90 could lead to a rapid drop towards the March’s low of 0.7490”.

“AUD dropped to a low of 0.7545 yesterday and the decline appears incomplete and the immediate pressure is still clearly on the downside. That said, 0.7490 is a major support and at this stage, a sustained break below this level is not expected (0.7520 is already a strong shorter-term support)”.

“Resistance is at 0.7595 but only a move back above 0.7620 would indicate that a short-term low is in place”.