AUD/USD faces decent support around 0.6855 – UOB

Extra downside in AUD/USD now appears limited around the 0.6855 level, comment FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.

Key Quotes

24-hour view: “The sharp drop in AUD to 0.6870 came as a surprise (we were expecting sideway-trading). Despite the decline, downward momentum has not improved by much and AUD is unlikely to weaken further. For today, AUD is likely trade sideways between 0.6880 and 0.6945.”

Next 1-3 weeks: “We highlighted last Friday (05 Aug, spot at 0.6955) that downward momentum has fizzled out and we expected AUD to consolidate and trade between 0.6885 and 0.7035. AUD subsequently dropped to 0.6870 before closing on a soft note at 0.6911 (-0.82%). Downward momentum has improved somewhat and AUD could edge lower from here. At this stage, any weakness is likely limited to 0.6855. On the upside, a breach of 0.6965 would indicate that the current mild downward pressure has eased.”