AUD/USD faces the next support at 0.7450 – UOB

In opinion of FX Strategists at UOB Group, AUD/USD’s downside is expected to meet the next support at 0.7450.

Key Quotes

24-hour view: “While we expected AUD to weaken yesterday, we were of the view that ‘0.7450 is likely out of reach’. Our view was not wrong as AUD dropped to 0.7461 before closing on a soft note at 0.7471 (-0.38%). Despite the decline, downward momentum has not improved by much. That said, there is room for AUD dip below 0.7450 but it is unlikely able to maintain a foothold below this level. The next support at 0.7410 is unlikely to come into the picture. On the upside, a break of 0.7495 (minor resistance is at 0.7480) would indicate that the current downward pressure has eased.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (01 Jul, spot at 0.7495). As highlighted, AUD is still under pressure and the next support is at 0.7450. Downward momentum has improved, albeit not by much. A break of 0.7450 would not be surprising and would shift the focus to 0.7410. Overall, AUD is expected to stay under pressure unless it can move above 0.7530 (‘strong resistance’ level was at 0.7555 yesterday).”