FX Strategists at UOB Group believe the pair could slip back to the 0.7730 region in the near term.

Key Quotes

24-hour view: “The anticipated weakness exceeded our expectation by a wide margin as AUD crashed through several strong support levels before ending the day near the low. Downward momentum remains strong and with no sign of stabilization just yet, further weakness is expected from here. That said, the 0.7759 low that was seen earlier this month is a strong support level and may not yield so easily (next support is at 0.7730). On the upside, any intraday recovery is expected to hold below the overnight high of 0.7880 (0.7845 is already a strong resistance)”.

Next 1-3 weeks: “After trading mostly sideways for several days, the sharp and abrupt decline yesterday that sliced through the 0.7820 support was unexpected. While it is too early to expect that AUD has moved into a bearish phase, the undertone has weakened considerably and this could lead to a test of the solid support at 0.7730 (the month-to-date low near 0.7760 is acting as a strong intervening support). Overall, we expect AUD to stay under pressure, at least for the next several days unless it can reclaim 0.7910”.