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FX Strategists at UOB Group noted further downside in AUD/USD should face support in the 0.5230 region for the time being.

Key Quotes

24-hour view: “Instead of ‘testing the round-number level of 0.5600’, AUD tested the next round-number of 0.5500 as it plunged to 0.5510 before snapping back up. While further AUD weakness is not ruled out in the days ahead, severely oversold short-term conditions and some tentative signs of waning momentum suggest AUD could take a break from making fresh lows today. That said, further choppy price actions still seem likely but yesterday’s super-wide range of 0.5510/0.5963 is expected to be wide enough to contain the movement in AUD.”

Next 1-3 weeks: “The 0.5850 level indicated yesterday (18 Mar, spot at 0.5995) is but just a distant memory as AUD crashed to 0.5700. We have highlighted the ‘lack of support levels note’ support last Friday (13 Mar) and from here, there is a support (albeit a minor one) at 0.5230. Below that, is the record low of 0.4775 (Apr 2001). On the upside, the ‘strong resistance’ is at 0.6000 now (from yesterday’s level of 0.6180.”