Further downside to the 0.7325 level remains on the cards for AUD/USD in the short term, suggested FX Strategists at UOB Group Quek Ser Leang and Lee Sue Ann.

Key Quotes

24-hour view: “Yesterday, we held the view AUD could drift lower to 0.7360 but is unlikely to threaten the major support at 0.7325. AUD subsequently dipped to a low of 0.7343. The decline is approaching oversold territory and this coupled with lackluster downward momentum suggests AUD is unlikely to weaken much further. For today, AUD is more likely to trade between 0.7335 and 0.7385.”

Next 1-3 weeks: “We highlighted yesterday (18 Apr, spot at 0.7390) that the bias for AUD is on the downside but in view of the mild downward pressure, the chance of a break of the strong support at 0.7325 is not high. AUD subsequently dropped to 0.7343 before settling on a soft note at 0.7353 (-0.50%). Downward momentum has improved a tad and the chance for AUD to break 0.7325 has increased. In order to maintain the build-up in momentum, AUD should not move above 0.7420 (‘strong resistance’ level) within these few days. Looking ahead, the next support below 0.7325 is at 0.7280.”