United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann report AUD/USD slipping as the stronger US Dollar weighs on commodity currencies. Short‑term momentum has turned lower, with scope for a test of major support at 0.6935, though a sustained break is seen as unlikely. Over 1–3 weeks, the outlook is neutral, with the Australian Dollar expected to trade between 0.6935 and 0.7020.
Australian Dollar pressured but still range-bound
"24-HOUR VIEW: While we expected AUD to “edge higher” yesterday, we were of the view that “it is unlikely to break above 0.7000.” We were not wrong as AUD rose to 0.6995, but we did not expect the subsequent sharp pullback that reached a low of 0.6956. Downward momentum is starting to build, and today, there is a chance for AUD to test the major support at 0.6935. A sustained drop below this level appearsunlikely. Resistance is at 0.6965, followed by 0.6975."
"1-3 WEEKS VIEW: We turned neutral on AUD last Wednesday (07 Oct, spot at 0.6980) and indicated that it “is likely to trade between 0.6935 and 0.7020.” There is no change in our view."
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