AUD/USD: Can potentially fall towards 0.6670 – UOB Group

A break 0.6700 is not ruled out; given the mild momentum, AUD may not be able to maintain a foothold below this level. Bias for AUD remains on the downside; a clear break below 0.6700 would suggest further decline, potentially to 0.6670, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

A break 0.6700 is not ruled out

24-HOUR VIEW: “We expected AUD to trade in a range between 0.6725 and 0.6780 yesterday. Instead of trading in a range, AUD edged lower to 0.6708, closing on a soft note at 0.6719 (-0.42%). Downward momentum has increased, albeit slightly. To continue to decline, AUD must remain below 0.6755 with minor resistance at 0.6735. On the downside, a break of the major support at 0.6700 is not ruled out, but given the mild momentum, AUD may not be able to maintain a foothold below this level. The next support at 0.6670 is unlikely to come under threat.”

1-3 WEEKS VIEW: “We indicated two days ago (08 Oct, spot at 0.6755) that AUD is “is expected to continue to weaken, albeit at a slower pace.” We added, “the next level to watch is 0.6700.” Yesterday, AUD edged lower to 0.6708. While there has been no significant increase in momentum, the bias for AUD remains on the downside. A clear break below 0.6700 would suggest AUD could decline further, potentially to 0.6670. The downward bias is intact provided that AUD remains below 0.6785 (‘strong resistance’ level previously at 0.6800).”

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