Analysts cite intraday stabilization but maintain a negative bias, expecting gradual downside with resistance at 0.7105.
UOB analysts Quek Ser Leang and Lee Sue Ann project the Australian Dollar to weaken toward 0.7000 against the US Dollar over the next 1-3 weeks. The pair is stabilizing intraday between 0.7015 and 0.7065 after a brief dip to 0.7016, but downward pressure persists.
Recent price action indicates a tentative increase in downward momentum, with a break below 0.7120 last week accelerating the decline. Strong resistance remains at 0.7105, while support near 0.7040 is seen as significant but not yet tested.
The bias tilts lower, with multi-month downside risks described as gradual. Analysts note that a sustained drop below 0.7000 remains unlikely in the near term.