AUD/USD: Downside pressure mitigated above 0.5950 – UOB

The selling pressure around AUD/USD is seen alleviated above the 0.5950 level, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “While we expected AUD to weaken, we did not anticipate the sudden burst in volatility as AUD sliced through several strong support levels and closed lower by a whopping -3.87% (0.5771). There is no sign the current rout in AUD is about to end soon. Only a move above 0.5950 would indicate the current weakness has stabilized.”

Next 1-3 weeks: “The 0.5850 level indicated yesterday (18 Mar, spot at 0.5995) is but just a distant memory as AUD crashed to 0.5700. We have highlighted the ‘lack of support levels note’ support last Friday (13 Mar) and from here, there is a support (albeit a minor one) at 0.5230. Below that, is the record low of 0.4775 (Apr 2001). On the upside, the ‘strong resistance’ is at 0.6000 now (from yesterday’s level of 0.6180.”