United Overseas Bank (UOB) strategist Quek Ser Leang reported that the Australian Dollar (AUD) closed at 0.6951 against the US Dollar after briefly spiking to 0.6976, with intraday price action expected to remain between 0.6930 and 0.6975 [1]. The recent weakness in AUD/USD, which began in mid-September, is still considered intact; however, due to oversold conditions, further declines may struggle to reach the next major support at 0.6866 [1].
On a short-term basis, UOB noted that downward momentum has slowed, and the AUD is more likely to consolidate between 0.6900 and 0.6950, as evidenced by a rebound after falling to a low of 0.6904 last Thursday and a subsequent close 0.29% higher at 0.6951 [1]. The brief rise to 0.6976 during the New York session did not result in increased upward momentum, reinforcing expectations for sideways trading in the near term [1].
Looking at the 1–3 month horizon, UOB highlighted a bearish EMA crossover and identified the July low at 0.6923 as a key level to watch [1]. The bank emphasized that only a breach of the 0.6985 'strong resistance' level would indicate that the current weakness in the AUD is stabilizing [1].
No specific market reactions or analyst opinions beyond UOB's technical outlook were discussed in the article [1].
CONCLUSION
UOB's analysis suggests that while the Australian Dollar remains under pressure, further downside is likely to be limited due to oversold conditions and key support levels. The currency is expected to consolidate in the near term unless it breaks above the 0.6985 resistance, which would signal a potential stabilization.