AUD/USD Sees Further Downside Risk Ahead: UOB Analysts
UOB's analysts Quek Ser Leang and Lee Sue Ann continue to see downside risk for the Australian Dollar against the US Dollar. The AUD/USD pair has pulled back from Monday's sharp drop, with prices currently trading within a narrow range of 0.7100-0.7140.
The analysts maintain that further weakness is possible in the next 1-3 weeks, with a close below 0.7100 opening the way for a move towards 0.7050. However, they note that resistance is capped near 0.7175, and as long as the AUD holds above this level, the likelihood of closing below 0.7100 remains intact.
On Monday, the AUD fell more than expected, reaching a low of 0.7109, but the decline appears to be overdone. The analysts expect any decline in the next few days to stay within a range of 0.7100-0.7140.