The Australian Dollar (AUD) could drop further to 0.6705. Upward momentum has faded; downward momentum has increased slightly. AUD is likely to trade with a downward bias but is unlikely to break 0.6680, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann note.

AUD to test 0.6680 below 0.6705

24-HOUR VIEW: “While we noted yesterday that the underlying tone has softened, we held the view that AUD ‘is likely to trade in a lower range of 0.6740/0.6785.’ Instead of trading in a range, AUD fell sharply, reaching a low of 0.6715. AUD closed on a weak note at 0.6734 (-0.38%). The sharp and swift drop appears to be overdone, but with no sign of stabilisation just yet, AUD could drop further to 0.6705. The major support at 0.6680 is unlikely to come under threat. Resistance levels are at 0.6745 and 0.6760.”