In the opinion of UOB Group’s Economist Lee Sue Ann and Market Strategist Quek Ser Leang, AUD/USD could slip back to the 0.6730 region in the near term.

Key Quotes

24-hour view: “Yesterday, we held the view that AUD could test 0.6775 before stabilization is likely. However, AUD did not quite test 0.6775 as it rebounded from a low of 0.6783. Despite the lackluster downward momentum, we continue to see room for AUD to test 0.6775 before a more sustained rebound is likely. On the upside, a breach of 0.6845 (minor resistance is at 0.6825) would indicate that 0.6775 is unlikely to come into view.”

Next 1-3 weeks: “We have expected AUD to weaken since late last week. In our update from yesterday (23 Feb, spot at 0.6810), we indicated that AUD is likely to weaken further to 0.6775, possibly 0.6730. We continue to hold the same view. All in all, only a breach of 0.6890 (no change in ‘strong resistance’ level) would indicate that AUD is not weakening further.