In the opinion of FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang, further selling pressure in AUD/USD should meet support around 0.6680.

Key Quotes

24-hour view: “We highlighted yesterday that ‘there is chance for AUD to break 0.6920 but a sustained rise above this level is unlikely’. AUD subsequently rose to 0.6916 before nose-diving to a low of 0.6726 during NY session. Further weakness appears likely even though Jul’s low near 0.6680 is unlikely to come under threat for today (there is another support at 0.6700). Resistance is at 0.6765 followed by 0.6795.”

Next 1-3 weeks: “The AUD strength that started two days ago ended abruptly as AUD plunged below our ‘strong support’ level at 0.6805 (low has been 0.6726). The decline has shifted the risk for AUD to the downside but any weakness is expected to encounter solid support at 0.6680. Overall, only a break of 0.6820 (‘strong resistance’ level) would indicate that the downside risk has dissipated.”