The Australian Dollar (AUD) may face continued weakening in the near future, with analysts from UOB Group highlighting the significant support level at 0.6425 that could be tested.
AUD Testing Key Support Level
24-HOUR VIEW: Despite a rebound last Friday to 0.6547, the AUD closed slightly higher at 0.6515. The currency’s underlying tone appears soft, with a potential for a drop below 0.6480. However, the significant support at 0.6425 is expected to hold. Resistance levels are seen at 0.6515 and 0.6535.
1-3 WEEKS VIEW: The AUD could continue its weakening trend, but breaking the support at 0.6425 remains uncertain. Only a breach of 0.6550 would indicate a possible end to the recent weakness that began in mid-July.
Analysis and Implications
For investors and traders, the AUD’s potential weakness and testing of the 0.6425 support level suggest a cautious approach. Monitoring the currency’s movements and key resistance levels can help in making informed decisions. It is important to wait for a clear breakout above 0.6550 to confirm a change in trend.