UOB analysts see the Australian dollar stabilizing between 0.6880 and 0.6920, with further downside risk over a 1-3 month horizon.
The Australian dollar remains confined to a short-term range of 0.6880-0.6920 against the US dollar, following a sharp decline. Downward momentum has begun to ease, though a break above 0.6940 would signal reduced risk of testing the 0.6835 support level.
AUD/USD closed 0.30% lower at 0.6900 after trading between 0.6875 and 0.6917. Analysts had previously flagged downside risks on June 18, when the pair was at 0.7025, and noted a potential drop toward 0.6980. The recent impulsive decline suggested further weakness, but the major support at 0.6835 remains untested.
Near-term support is seen at 0.6860, while resistance holds at 0.6940-0.6950. The broader outlook still points to downside risk over the next 1-3 months, despite the current consolidation phase.