The continuation of the downtrend in AUD/USD should meet a tough support around the 0.6500 region, suggest Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group.

Key Quotes

24-hour view: “Yesterday, we held the view that ‘there is room for AUD to weaken, any decline is likely part of a lower trading range of 0.6560/0.6625’. Our expectations did not materialize as AUD traded between 0.6577 and 0.6636 before closing largely unchanged at 0.6591 (+0.01%). Despite the quiet price actions, downward momentum appears to have increased. Today, AUD is likely to trade with a downward bias but 0.6560 is expected to offer strong support. Resistance is at 0.6615, followed by 0.6635.”

Next 1-3 weeks: “Our update from two days ago (08 Mar, spot at 0.6585) is still valid. As highlighted, AUD is likely to weaken further but any weakness is likely to be at a slower pace. The major support at 0.6500 may not come into view so soon. The downside risk is intact as long as AUD stays below 0.6700 (no change in ‘strong resistance’ level) in the next 1-2 days.”