In opinion of FX Strategists at UOB Group, AUD/USD could grind lower to the 0.7560 region in the next weeks.
Key Quotes
24-hour view: “We expected ‘further AUD weakness’ yesterday but we were of the view ‘0.7560 is likely out of reach for now’. We highlighted that ‘0.7595 is already quite a strong level’. While AUD dropped to 0.7592, the subsequent sharp bounce from the low came as a surprise (overnight high of 0.7697). The rapid swings have resulted in a mixed outlook and AUD could trade sideways within a broad 0.7615/0.7700 range today.”
Next 1-3 weeks: “We noted yesterday that ‘shorter-term momentum is beginning to improve but AUD has to close above 0.7820 before a sustained advance can be expected’. However, AUD dropped sharply during NY hours and extended its decline this morning. Risk has shifted quickly to the downside and AUD is likely trade with a downward bias towards 0.7560. On the upside, a break of 0.7730 would indicate the downside risk has dissipated. On a shorter-term note, 0.7700 is already a strong level.”