In opinion of FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang, AUD/USD could intensify the decline on a close below 0.7325.
Key Quotes
24-hour view: “Yesterday, we expected AUD to ‘trade sideways between 0.7400 and 0.7455’. AUD subsequently rose to 0.7459 before staging a surprisingly sharp decline to 0.7365. The bias for today is on the downside but any weakness is expected to encounter solid support at 0.7345. Next support is at 0.7325. On the upside, a breach of 0.7405 (minor resistance is at 0.7390) would indicate that the current downward pressure has eased.”
Next 1-3 weeks: “We highlighted yesterday (219 Apr, spot at 0.7435) that downward momentum has more or less dissipated and we expected AUD to trade sideways within a range of 0.7370/0.7495. AUD subsequently rose to 0.7459 before dropping sharply to 0.7365. Shorter-term downward momentum is building again but AUD has to close below 0.7325 before a sustained decline is likely. The chance for AUD to close below 0.7325 is not high for now but it would remain intact as long as it does not move above 0.7435 within these few days. Looking ahead, the next support below 0.7325 is at 0.7280.”
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