In opinion of FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang, further downside in AUD/USD could retest the 0.6900 region ahead of 0.6870 in the next weeks.

Key Quotes

24-hour view: “We expected AUD to ‘weaken to 0.6900’ yesterday. Our expectations did not materialize as it dipped to 0.6911 before rebounding slightly. While downward momentum has waned, we still see room for AUD to weaken to 0.6900. The next support at 0.6870 is unlikely to come under threat. Resistance is at 0.6960 followed by 0.6985.”

Next 1-3 weeks: “Our update from yesterday (10 May, spot at 0.6945) still stands. As highlighted, AUD is still weak. The next support is at 0.6900 followed by 0.6870. Overall, only a breach of 0.7030 (‘strong resistance’ level was at 0.7050 yesterday) would indicate that the current weakness has stabilized.”