AUD/USD: Focus is now on 0.6900 – UOB

A potential test of 0.6850 emerges on the horizon if AUD/USD closes below the 0.6900 level, suggested FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.

Key Quotes

24-hour view: “We highlighted yesterday that ‘momentum indicators are mostly neutral’ and we expected AUD ‘trade sideways within a range 0.6920/0.7010’. Our view for sideway-trading turned out to be correct even though AUD traded within a narrower range than expected (0.6935/0.6993). Downward momentum has improved somewhat and AUD could drift lower to 0.6930. The next support at 0.6900 is unlikely to come into the picture. On the upside, a breach of 0.6995 would indicate that the current mild downward pressure has eased.”

Next 1-3 weeks: “There is not much to add to our update from Monday (20 Jun, spot at 0.6955). As highlighted, AUD is likely still consolidating within a range of 0.6900/0.7100. Looking ahead, only a daily closing below 0.6900 would indicate that AUD is ready to move to 0.6850.”