AUD/USD: Next support emerges at 0.6830 – UOB

In the opinion of FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang, AUD/USD could slip back to the 0.6830 region in the next weeks.

Key Quotes

24-hour view: “We highlighted yesterday that AUD ‘could dip below 0.6860 but the major support at 0.6830 is likely out of reach for now’. AUD dipped briefly to 0.6954 before rebounding to trade in a relatively choppy manner. The price actions appear to be part of a consolidation and AUD is likely to trade between 0.6865 and 0.6925 for today.”

Next 1-3 weeks: “Yesterday (30 Jun, spot at 0.6860), we highlighted that shorter-term downward momentum is beginning to build again and AUD could break 0.6860. While AUD subsequently breached 0.6860, there was not much follow through (AUD rebounded from 0.6854). There is no change in our view for now and only a break of 0.6940 (no change in ‘strong resistance’ from yesterday) would indicate that the downside risk has dissipated.”