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Further downside could drag AUD/USD to the mid-0.6500s in the next weeks, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “AUD traded between 0.6586 and 0.6622, lower and narrower than our expected sideway-trading range of 0.6590/0.6635. The price action offers no fresh clues and AUD could continue to trade sideways. Expected range for today, 0.6580/0.6625.”

Next 1-3 weeks: “AUD eked out a fresh low of 0.6585 (one pip below last Friday’s 0.6586 low) before recovering. For now, there is no change in our view from Friday (14 Feb, spot at 0.6615) wherein the risk for AUD is on the downside. That said, AUD has declined considerably since the start of the year and we have a relatively modest downside ‘target’ of 0.6550. On the upside, a breach of 0.6680 (no change in ‘strong resistance’ level) would indicate the current downward pressure has eased.”