AUD/USD now faces the next support at 0.6680 – UOB

AUD/USD remains weak and could revisit the 0.6680 region in the near term, according to FX Strategist at UOB Group Lee Sue Ann and Quek Ser Leang.

Key Quotes

24-hour view: “We indicated yesterday AUD ‘has likely moved into a consolidation phase’ and we expected AUD to ‘trade sideways within a range of 0.6715/0.6780’. Our view for sideway-trading was not wrong as AUD traded within a range of 0.6713/0.6775. The underlying tone has firmed somewhat and AUD could edge higher for today. That said, any advance is not expected to break the strong resistance at 0.6800 (there is another resistance at 0.6780). Support is at 0.6740 followed by 0.6720.’

Next 1-3 weeks: “Two days (07 Sep, spot at 0.6735), we highlighted that further AUD weakness is likely and the next support is at 0.6680. There is no change in our view for now even though AUD could consolidate for a couple of days first.  Overall, only a break of 0.6800 (no change is ‘strong resistance’ level from yesterday) would indicate that the weakness that started late week has run its course.”