UOB analysts see increased downside momentum for the Australian dollar but expect support at 0.7000 to hold near term.
The Australian dollar dipped to 0.7005 against the US dollar before recovering to close at 0.7027, down 0.25% on the day. UOB analysts note slightly stronger downside momentum but view a sustained break below 0.7000 as unlikely in the near term.
Earlier forecasts had anticipated a range between 0.7015 and 0.7065, but the pair spiked to 0.7071 before sliding sharply. Resistance is now seen at 0.7060, with minor resistance at 0.7040, while support remains at 0.7000 and 0.6975.
Over the next one to three weeks, further declines would require a clear break below 0.7000, though analysts do not expect the pair to threaten 0.6975 imminently.