In the opinion of Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group, the likelihood of extra gains in AUD/USD seems to have lost some traction for the time being.

Key Quotes

24-hour view: “Our view that AUD would strengthen yesterday was incorrect as it slumped to a low of 0.6650 in NY trade. Despite the decline, downward momentum has not improved much. While AUD could edge lower today, any decline is likely part of a lower range of 0.6640/0.6700. In other words, a clear break of 0.6640 is unlikely.”

Next 1-3 weeks: “Two days ago (20 Mar, spot at 0.6700), we noted that improved upward momentum would likely lead to AUD trading with an upward bias towards 0.6780. However, AUD has not been able to make any headway on the upside. The rapid loss of momentum has diminished the odds for AUD to strengthen. However, only a breach of 0.6640 (no change in ‘strong support’ level) would indicate that AUD is likely to trade in a broad consolidation range instead of heading higher.”