Further downside pressure in AUD/USD is expected to meet strong support at 0.6995 in the near term, commented FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.

Key Quotes

24-hour view: “AUD soared to a high of 0.7148 during Asian session yesterday before easing off to trade sideways. Upward momentum has not improved by much and AUD is unlikely to strengthen much further. For today, AUD is more likely to trade sideways, expected to be within a range of 0.7055/0.7140.”

Next 1-3 weeks: “AUD snapped it losing streak yesterday as it rebounded and closed higher for the first time in 8 days. Despite the rebound, it is premature to expect an end to the current weakness in AUD. However, any further decline is expected to face solid support at 0.6995. On the upside, a breach of 0.7180 (‘strong resistance’ level) would indicate that the weak phase in AUD that started more than a week ago has come to an end.”