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AUD/USD has likely shifted the view to the downside and could drop to the 0.7645 level in the next week, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “We expected AUD to ‘trade within a 0.7690/0.7730 range’ yesterday. However, it dropped to 0.7675 before closing on a soft note at 0.7687. Downward momentum has improved, albeit not by much. There is scope for AUD to test the 0.7665 support but a sustained decline below this level is unlikely (next support is at 0.7645). Resistance is at 0.7705 followed by 0.7720.”

Next 1-3 weeks: “On Monday (14 Jun, spot at 0.7705), we highlighted that while downward momentum has improved, AUD ‘has to close below 0.7680 before a move to 0.7645 can be expected’. AUD dropped to 0.7675 yesterday before closing at 0.7687 (-0.32%). While we prefer a weaker daily closing, the price actions suggest that the risk for AUD has shifted to the downside towards 0.7645. The downside risk remains intact as long as AUD does not move above 0.7750 (‘strong resistance’ level previously at 0.7765).”