The Australian dollar is poised for further declines toward the 0.6975 level after breaking below the psychologically significant 0.7000 mark, according to United Overseas Bank currency strategists Quek Ser Leang and Lee Sue Ann. The pair issued a cautious bearish call on AUD/USD, noting that while downward pressure persists, momentum remains moderate rather than aggressive. Their intraday outlook anticipates continued weakness, though they express skepticism about a decisive breach below 0.6975 in the immediate term.
The move affects Australian dollar traders, commodity-linked currency positions, and Asia-Pacific forex desks managing AUD exposure. The breach of 0.7000 represents a technical deterioration that could trigger additional stop-loss selling, though UOB’s assessment suggests the selloff may lack conviction for now.
FXnCO Insight
Traders should watch 0.6975 as a near-term floor for AUD/USD, positioning for range-bound weakness rather than a sharp breakdown, with tight stops advisable given modest momentum conditions.
Source: FXStreet