The bearish view stays unchanged around the Aussie Dollar and it could still drop to the 0.67 area vs. the Greenback, according to FX Strategists at UOB Group.
24-hour view: “AUD traded between 0.6746 and 0.6781 yesterday, narrower than our expected sideway-trading range of 0.6735/0.6785. Momentum indicators are still mostly ‘neutral’ and AUD is likely to continue to trade sideways for today. Expected range for today, 0.6735/0.6775″.
Next 1-3 weeks: “We highlighted one week ago (19 Sep, spot at 0.6820) that AUD has made a short-term top. As AUD continues to move lower, we ‘upgraded’ the downside risk and our latest narrative was from Monday (23 Sep, spot at 0.6770) wherein “a break of 0.6755 would shift the focus to the next support at 0.6700″. After staging a recovery on Tuesday (24 Sep), AUD reversed and plunged to a low of 0.6739 yesterday (26 Sep). The price action indicates that AUD remains weak and the next focus is at 0.6700. On the upside, the ‘strong resistance’ level has moved lower to 0.6805 from 0.6820 previously. Only a break of the ‘strong resistance’ would indicate that the current weakness has stabilized”.