AUD/USD risks further downside in the near term – UOB

In the opinion of Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group, AUD/USD faces extra declines in the near term.

Key Quotes

24-hour view: While we expected AUD to weaken yesterday, we were of the view that “the major support at 0.6230 could be out of reach.” AUD weaken less than expected to 0.6271 before rebounding. The current price action is likely part of a consolidation phase. Today, AUD is likely to trade sideways between 0.6300 and 0.6355. 

Next 1-3 weeks: Yesterday (26 Oct, spot at 0.6285), we indicated that the risk for AUD has swung to the downside, towards 0.6230. We continue to hold the same. Overall, only a breach of 0.6360 would indicate our view is incorrect.