UOB analysts Quek Ser Leang and Lee Sue Ann report that the Australian Dollar (AUD) has continued its recent decline against the US Dollar (USD), reaching a low of 0.7006 yesterday following a sharp drop two days prior [1]. Despite positive divergence indicating slowing downward momentum, the analysts maintain a negative short-term outlook, suggesting that the AUD may still edge lower and test the 0.6970 level before any stabilization occurs [1]. Intraday movements are expected to remain within the 0.6995–0.7035 range unless resistance at 0.7075 is breached, which would signal that the weakness is stabilizing [1].
The analysts note that their negative stance on the AUD began two weeks ago, and while the likelihood of the currency reaching 0.7050 had diminished considerably, the AUD subsequently fell below this level and reached 0.7006 [1]. The substantial decline over the past two weeks underscores continued pressure on the currency, with further downside possible in the near term [1].
No specific market reactions or analyst opinions regarding broader implications were discussed in the article. The focus remains on technical levels and the potential for further weakness unless key resistance is broken [1].
CONCLUSION
The Australian Dollar remains under pressure, with UOB analysts expecting a possible test of 0.6970 against the US Dollar before stabilization. Unless resistance at 0.7075 is breached, the negative outlook persists. Market participants should monitor these technical levels for signs of a reversal or continued weakness.