AUD/USD now shifts the focus to 0.6400 – UOB

AUD/USD remains under pressure and could attempt a deeper pullback to 0.6400, suggest FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.

Key Quotes

24-hour view: “AUD plunged to 0.6512 last Friday before extending its decline during early Asian. The impulsive decline is likely to extend. That said, the next support at 0.6400 is likely out of reach for now (there is another support at 0.6460). Resistance is at 0.6530 followed by 0.6570.”

Next 1-3 weeks: “More than a week ago (14 Sep, spot at 0.6735), we indicated that the risk for AUD had shifted to the downside. As AUD dropped, in our latest narrative from last Thursday (22 Sep, spot at 0.6600), we highlighted that AUD is still weak and the focus is at 0.6500. AUD dropped below 0.6500 during early Asian hours today and we continue to expect AUD to weaken. The next level to watch is at 0.6400. The downside risk is intact as long as AUD does not move above 0.6620 (‘strong resistance’ level was at 0.6705 last Friday).”