According to FX Strategists at UOB Group, AUD/USD could lose further ground and retest the 0.7165/30 band in the next weeks.

Key Quotes

24-hour view: “Our expectations for AUD to ‘weaken further’ yesterday was incorrect as it rebounded strongly to 0.7249. The sharp rebound appears to be running ahead of itself and the upside risk appears to be limited. For today, AUD is likely to trade sideways between 0.7215 and 0.7265.”

Next 1-3 weeks: “There is no change in our view from yesterday (04 Jan, spot at 0.7195). As highlighted, AUD is likely to trade with a downward bias. Support is at 0.7165 followed by 0.7130. On the upside, a breach of 0.7265 (no change in ‘strong resistance’ level) would indicate that our view is incorrect.”