Further decline in AUD/USD could retest the 0.6530 level once 0.6570 is cleared, suggest UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.

Key Quotes

24-hour view: “Yesterday, we held the view that AUD ‘could drop to 0.6570 first before a rebound is likely’. Our expectations did not materialize as AUD traded in a relatively quiet manner between 0.6601 and 0.6650. The price actions appear to be part of a consolidation phase and AUD is likely to within a range of 0.6615/0.6675 today.”

Next 1-3 weeks: “We continue to hold the same view as yesterday (22 Nov, spot at 0.6605) where AUD is under mild downward pressure. That said, AUD has to break and stay below 0.6570 before a decline to 0.6530 is likely. On the upside, a breach of 0.6690 (no change in ‘strong resistance’ level) would indicate that the current mild downward pressure has eased.”