In the opinion of FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang, chances for a deeper retracement in AUD/USD appears to be dwndling.

Key Quotes

24-hour view: “We expected AUD to ‘trade between 0.6420 and 0.6540’ yesterday. AUD subsequently traded within a narrower range than expected (0.6436/0.6524). The price actions still appear to be part of a consolidation and we expect AUD to trade within a 0.6440/0.6540 range for today.”

Next 1-3 weeks: “Our update from yesterday (29 Sep, spot at 0.6490) still stands. As highlighted, downward momentum is beginning to wane and this coupled with the strong bounce from the low of 0.6364 suggests the weakness in AUD could stabilize soon. All in, only a break of 0.6555 (no change in ‘strong resistance’ level from yesterday) would indicate AUD is unlikely to weaken further.”