AUD/USD is still seen trading between 0.6565 and 0.6760 for the time being, according to Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group. Last Friday, we expected AUD to ‘trade in a range of 0.6655/0.6720’. However, AUD dropped to a low of 0.6625 before settling at 0.6643 (-0.61%). While downward momentum has not increased much, AUD is likely to trade with a downward bias towards 0.6610.
The major support at 0.6565 is not expected to come under threat. Resistance is at 0.6670; a break of 0.6695 would indicate that the current downward pressure has eased.
We have held a positive AUD view since the start of last week. As AUD struggled to extend its advance, we highlighted last Friday (24 Mar, spot at 0.6680) that AUD must break and hold above 0.6760 for the chances of it advancing further will rapidly diminish. AUD subsequently dropped below our ‘strong support’ level of 0.6640 (low of 0.6625). The price action suggests that AUD is not advancing further. For the time being, AUD is likely to trade between the two major levels of 0.6565 and 0.6760.
