Further downside in AUD/USD is seen meeting decent contention in the mid-0.6800s in the near term, suggested FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.

Key Quotes

24-hour view: “Yesterday, we held the view that ‘the risk is still on the downside but AUD is unlikely able to maintain a foothold below 0.6880’. Our view was not wrong as AUD dropped to 0.6870 before rebounding. The rebound amidst waning downward momentum suggests that AUD is unlikely to weaken further. For today, AUD is more likely to trade sideways between 0.6875 and 0.6935.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (23 Jun, spot at 0.6905). As highlighted AUD could drift lower but any weakness is expected to encounter solid support at 0.6850. Overall, only a break of 0.6965 (‘strong resistance’ level was at 0.6980 yesterday) would indicate that the current mild downward pressure has eased.”