AUD/USD still risks a move lower – UOB

FX Strategists at UOB Group see AUD/USD still under pressure although a move to 0.6735 appears to have lost momentum for the time being.

Key Quotes

24-hour view: “AUD dipped briefly below our expected sideway-trading range of 0.6760/0.6785 as it touched a 1-1/2 –month low of 0.6755 last Friday Despite making fresh low, downward momentum remains lackluster. From here, AUD is expected to trade with a downward bias but any weakness is viewed as lower trading range of 0.6745/0.6780 (a sustained decline below 0.6745 is not expected)”.

Next 1-3 weeks: “AUD continues to trade in a ‘slow motion’ manner as it eked out a fresh low of 0.6755 last Friday (29 Nov). While the risk remains on the downside, lackluster momentum continues to suggest the next support at 0.6735 may not come into the picture anytime soon (no change in narrative since last Tuesday, 26 Nov). All in, the current mild downward pressure is deemed as intact unless AUD can move above 0.6800 (‘strong resistance’ level was previously slightly higher at 0.6810). Looking forward, if AUD were to crack 0.6735, the next support is at 0.6700”.