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AUD/USD remains under pressure and could now slip back to the 0.6880 area, according to FX Strategists at UOB Group.

Key Quotes

24-hour view: “While our view that “a break of 0.6900 is unlikely” was not wrong (low of 0.6911), the subsequent strong overnight rebound was not exactly expected. The advance is running ahead of itself even though a move above the overnight high of 0.6969 would not be surprising. That said, any AUD strength is viewed as higher 0.6935/0.6985 range (a sustained rise beyond 0.6985 is not expected)”.

Next 1-3 weeks: “Our view from Monday (08 Jul, 0.6985) was for AUD to trade sideways within a 0.6920/0.7030 range. The rapid pace of which AUD tested the bottom of the range (overnight low of 0.6920) was not exactly expected. Downward pressure has increased quickly and from here, AUD is expected to trade with a ‘downside bias’ towards the strong support at 0.6880. At this stage, the June’s low of 0.6832 is likely ‘safe’. All in, AUD is expected to stay under pressure unless it can move above the strong resistance at 0.6990″.