AUD/USD still risks a deeper retracement to the 0.7015 level in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “AUD dropped to 0.7052 last Friday before rebounding slightly to close at 0.7078 (-0.88%). While oversold, the weakness in AUD could extend to 0.7040 before stabilization is likely. The next support at 0.7015 is not expected to come into the picture. Resistance is at 0.7100 followed by 0.7120.”

Next 1-3 weeks: “AUD dropped sharply last Friday before closing on a weak note at 0.7078 (-0.88%). Downward momentum has improved somewhat and AUD is likely to trade with a downward bias. However, any weakness is likely limited to a test of 0.7015. On the upside, a breach of 0.7140 (‘strong resistance’ level) would indicate that the current mild downward pressure has eased.”