Increasing weakness around the Aussie Dollar could prompt AUD/USD to recede to the 0.67 region in the next weeks, suggested GX Strategists at UOB Group.
Key Quotes
24-hour view: “AUD traded between 0.6741 and 0.6770, lower than our expected range of 0.6745/0.6780. The underlying tone has weakened somewhat and this could lead to AUD drifting lower to 0.6725. The next support at 0.6700 is likely out of reach for today. On the upside, only a move above 0.6775 would indicate that the current mild downward pressure has eased”.
Next 1-3 weeks: “Despite overall negative indications, AUD has not been able to make much headway on the downside. For now, we continue hold the same view from last Thursday (26 Sep, spot at 0.6760) wherein the current AUD weakness could extend to 0.6700. Only a break of 0.6805 would suggest that a short-term bottom is in place”.
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