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AUD/USD remains weak and it could slip back to as low as the 0.60 region in the next weeks, in opinion of FX Strategists at UOB Group.

Key Quotes

24-hour view: “AUD dropped below the bottom of our expected 0.6100/0.6250 range (low of 0.6076) before recovering slightly. While downward pressure has eased, it is too early to expect a sustained recovery. From here, AUD could continue to edge lower towards 0.6050 (next support is at 0.6007). Only a move back above 0.6190 would indicate the current weakness has stabilized.”

Next 1-3 weeks: “There is not much to add to the update from last Friday (13 Mar, spot at 0.6270). As highlighted, the lack of support levels of note could lead to further drop in AUD. AUD dropped to 0.6077 yesterday (16 Mar) and the risk is still on the downside. From here, barring a move back above 0.6400 (‘strong resistance’ level previously at 0.6450), AUD could continue to head south towards the GFC low of 0.6007. On a shorter-term note, 0.6330 is already a strong level.”