UOB analysts forecast further declines in the Australian dollar after its second-largest daily drop this year.
The Australian dollar fell sharply against the US dollar, nearing 0.7040 in its second-largest one-day loss of 2024. UOB analysts noted the decline, with near-term support at 0.7020, though a sustained break below remains unlikely for now.
Earlier resistance at 0.7120 failed to hold, accelerating the drop to 0.7038. The pair’s momentum suggests potential for further weakness toward 0.7000 over the next 1-3 weeks, with resistance now at 0.7080-0.7105.
The move follows a rebound that stalled at 0.7144, reinforcing bearish sentiment. Analysts do not expect a sustained break below 0.7000 in the immediate term.