AUD/USD could weaken further and re-visit the 0.7560 region in the short-term horizon, suggested FX Strategists at UOB Group.
24-hour view: “Our expectation for AUD to ‘trade sideways’ was incorrect as it plunged to 0.7617 before extending its decline after NY close. While the decline is oversold, further AUD weakness would not be surprising. That said, the support at 0.7560 could be just out of reach. Resistance is at 0.7650 followed by 0.7680.”
Next 1-3 weeks: “We highlighted yesterday (23 Mar, spot at 0.7730) that ‘downward momentum is beginning to improve but AUD has to close below 0.7675 before further weakness can be expected’. However, we did not anticipate the sudden plunge in AUD to 0.7617 and the subsequent weak closing at 0.7626 (-1.55%). Vastly improved downward momentum indicates AUD is likely to weaken further. Support is at 0.7560 followed by 0.7510. The current weak phase is deemed intact as long as AUD does not move above 0.7715.”