AUD/USD risks a probable drop to 0.6450 – UOB


In the view of UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang, a deeper drop could see AUD/USD revisit the mid-0.6400s in the short term.

Key Quotes

24-hour view: “When AUD was trading at 0.6540 in early Asian trade yesterday, we highlighted that ‘as long as AUD stays below 0.6580 (minor resistance is at 0.6560), the oversold weakness could extend to 0.6515, possibly testing the major support at 0.6500’. Our view was correct even though AUD edged a couple of pips below 0.6500 (low of 0.6498). Today, further AUD weakness is not ruled out but in view of the severely oversold conditions, AUD is unlikely to threaten 0.6450 (minor support is at 0.6475). Resistance is at 0.6525, followed by 0.6545.”

Next 1-3 weeks: “After AUD fell sharply to 0.6530 on Wednesday, we highlighted yesterday (25 May, spot at 0.6540) that ‘the boost in momentum suggests AUD could weaken further to 0.6500’ We added, ‘At this stage, it is premature to expect a break of 0.6450’. While our view for AUD to weaken was correct, we did not quite expect 0.6500 to come into view so quickly (AUD dropped to 0.6498 in NY trade). The weakness in AUD that started two weeks ago has yet to stabilize. In other words, AUD could weaken further to 0.6450. On the upside, a breach of 0.6590 (‘strong resistance’ level was at 0.6615 yesterday) would suggest the weakness in AUD has stabilized.”

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD slides to multi-month lows below 1.0650

EUR/USD slides to multi-month lows below 1.0650

EUR/USD stays under heavy bearish pressure and trades at its lowest level since November below 1.0650. Divergent ECB-Fed policy outlooks and the risk-averse market atmosphere keep the US Dollar strongly bid and weigh on the pair.

EUR/USD News

GBP/USD extends decline below 1.2450 on sustained USD strength

GBP/USD extends decline below 1.2450 on sustained USD strength

GBP/USD extends losses and trades at fresh multi-month lows below 1.2450 even after the January month UK GDP was revised higher to 0.3%. The negative shift seen in risk mood fuels another leg higher in the USD and drags the pair lower.

GBP/USD News

Gold advances to new historic high above $2,400

Gold advances to new historic high above $2,400

Gold gathers bullish momentum ahead of the weekend and trades at a new record high above $2,400. Escalating geopolitical tensions help XAU/USD continue to push up despite the broad-based US Dollar strength.

Gold News

Robert Kiyosaki steers clear from ETFs, opts for holding Bitcoin directly instead

Robert Kiyosaki steers clear from ETFs, opts for holding Bitcoin directly instead

Rich Dad Poor Dad author Robert Kiyosaki says he will not buy Bitcoin ETFs. Kiyosaki stated his dislike for Wall Street’s financial products and preferred packaging his own. 

Read more

Five fundamentals for the week ahead: Israel-Iran tensions, US Retail Sales, and more Premium

Five fundamentals for the week ahead: Israel-Iran tensions, US Retail Sales, and more

US Retail Sales data will provide an updated snapshot of the health of the economy. Chinese GDP may confirm the narrative that Beijing's stimulus is working. UK inflation data may push the Bank of England to early rate cuts.

Read more

Forex MAJORS

Cryptocurrencies

Signatures