AUD/USD: A breach of 0.6750 could expose 0.6705 – UOB

AUD/USD remains under pressure and could break below the 0.6750 level in the next few weeks, according to FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.

Key Quotes

24-hour view: “Last Friday, we expected AUD to weaken but we were of the view that ‘the major support at 0.6750 could be out of reach’. Our expectations did not materialize as AUD traded between 0.6780 and 0.6855 before closing at 0.6808 (+0.33%). Momentum indicators are ‘flattish’ now and AUD is likely to consolidate for today, expected to be within a range of 0.6770/0.6830.”

Next 1-3 weeks: “There is not much to add to our update from last Friday (02 Sep, spot at 0.6800). As highlighted, AUD is expected to weaken and a break of 0.6750 would shift the focus to 0.6705. That said, oversold shorter-term conditions could lead to a couple of days of consolidation first. Overall, only breach of 0.6870 (no change in ‘strong resistance’ level from last Friday) would indicate that the downside risk has dissipated.”