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In opinion of FX Strategists at UOB Group, further weakness in AUD/USD carries the potential to reach the 0.6250 area in the next weeks.

Key Quotes

24-hour view: “Yesterday, we held the view that ‘the recovery in AUD could extend to 0.6480’. However, AUD did not quite reach 0.6480 as it eased off after touching 0.6476. Momentum indicators are mostly neutral now and for today, AUD is likely to trade sideways between 0.6400 and 0.6475.”

Next 1-3 weeks: “There is not much to add to our update from Monday (04 May, spot at 0.6395). As highlighted, the pullback from last week’s 0.6570 high has scope to extend lower to 0.6300, possibly 0.6250. That said, downward momentum has not improved by much and 0.6300 may not come into the picture so soon. On the upside, only a break of 0.6520 (no change in ‘strong resistance’ level) would indicate the current downward pressure has dissipated.”