In view of FX Strategists at UOB Group, a drop below the 0.7530 area seems unlikely for the time being.
24-hour view: “Instead of trading sideways (as expected yesterday), AUD dropped sharply after the release of the weaker than anticipated GDP data. The low has been 0.7558 and improved downward momentum suggests further weakness for today. That said, 0.7530 is a major support and this level is unlikely to yield so easily. Resistance is at 0.7590 followed by 0.7610. The 0.7638 high seen early yesterday is expected to be ‘safe’ for now”.
Next 1-3 weeks: “AUD is edging towards the bottom of the expected 0.7530/0.7650 consolidation range that was first highlighted one week ago. While the undertone has weakened, a sustained move below 0.7530 is not expected. This level is followed closely by another major longer-term support at 0.7500 that is unlikely to yield so easily. That said, only a move back above 0.7610 would indicate that the current mild downward pressure has eased”.
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