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AUD/USD faces volatile sessions and is still expected to remain under pressure, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “We are rewriting this as AUD just plunged to the low 0.6312 before snapping higher. Volatility is likely to remain elevated and the risk for AUD is likely to be on the downside. 0.6300 is a decent support but a break of this level could lead to further weakness to 0.6250, even as long as 0.6200. This morning high of 0.6630 is acting as high-water mark now.”

Next 1-3 weeks: “AUD just nose-dived to a low of 0.6312 at the time of writing and this has put paid to our view from last Wednesday (04 Mar, spot at 0.6585) wherein the ‘weakness in AUD has stabilized’. At this stage, it is too early to tell whether the outsized drop is a one-off event or the start of fresh down trend. Further spikes in volatility is likely but overall, AUD is expected to remain under pressure unless it can move and stay above 0.6650. Looking forward, if AUD were to close below 0.6300, it could lead to further sharp drop as the next support of note is not until the 2008 low near 0.6000.”