UOB analysts note increased selling pressure on the Australian dollar but expect limited downside below 0.7000 in the near term.
The Australian dollar dipped to a low of 0.7005 against the US dollar before closing at 0.7027, testing key support at 0.7000. The pair had earlier spiked to 0.7071 but reversed amid slightly stronger downside momentum.
Prior sessions saw AUD/USD trading in a tight range, with support holding above 0.7000 for weeks. Analysts remain cautious, citing near-term resistance near 0.7050 and potential for further declines if support breaks.
Markets are monitoring the pair closely as risk sentiment and commodity prices influence the Australian dollar’s trajectory.