AUD/USD’s corrective downtrend is predicted to meet strong contention around 0.6830 in the next weeks, suggested FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.

Key Quotes

24-hour view: “Despite the relatively large decline in AUD last Friday, downward momentum has not improved by much. That said, AUD could test the support at 0.6855 first before a rebound is likely. The next support at 0.6830 is unlikely to come under threat. Resistance is at 0.6910 followed by 0.6925.”

Next 1-3 weeks: “The outsized decline of 3.46% (Friday’s close of 0.6875) in AUD last week appears to be overdone. However, with no sign of stabilization just yet, there is scope for AUD to extend its decline but any further weakness is expected to encounter solid support at 0.6830. On the upside, a breach of 0.6960 would indicate that AUD is unlikely to weaken further.”