Australian Dollar: Gradual downside toward 0.7000 against US Dollar – UOB

UOB’s Quek Ser Leang and Lee Sue Ann see AUD/USD stabilising intraday between 0.7015 and 0.7065 after a brief dip, but retain a negative 1–3 week bias. They highlight that recent price action points to potential weakness toward 0.7000 while 0.7105 acts as strong resistance, and on a multi-month view, describe downside risks as gradual with significant support near 0.7040.

Aussie Dollar bias tilts lower

"24-HOUR VIEW: When AUD was at 0.7040 in the early Asian session yesterday, we indicated that “there is a chance for AUD to test 0.7020.” We highlighted that “a sustained drop below this level is unlikely, and the next support at 0.7000 is also unlikely to come into view.” It appeared that AUD briefly dipped to 0.7016 shortly after opening yesterday, but after the subsequent rebound to 0.7078, the immediate downward pressure has eased. Today, we expect AUD to trade in a range between 0.7015 and 0.7065."

"1-3 WEEKS VIEW: Last Thursday (04 Jun, spot at 0.7135), we highlighted that “there has been a tentative increase in downward momentum, and if AUD breaks and holds below 0.7120, it could lead to a drop to 0.7095.” After AUD sold off sharply on Friday, we highlighted yesterday (08 Jun, spot at 0.7040) that “the price action suggests that AUD could weaken to 0.7000.” We will maintain this view as long as 0.7105 (no change in ‘strong resistance’ level) is not breached."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)