In the opinion of Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group, AUD/USD faces further selling pressure as long as it trades below 0.6575.

Key Quotes

24-hour view: “Yesterday, we expected AUD to consolidate between 0.6500 and 0.6550. However, AUD traded in a range of 0.6521/0.6558. There is no directional bias for now and today, we expect AUD to trade sideways between 0.6490 and 0.6550.”

Next 1-3 weeks: “In our most recent narrative from last Friday (26 May, spot at 0.6505), we highlighted that the weakness in AUD that started in the middle of the month has yet to stabilize. We held the view that it could weaken further to 0.6450. Since then, AUD has not been able to make much headway below 0.6500 and downward momentum is beginning to slow. However, as long as 0.6575 (‘strong resistance’ level previously at 0.6590) is not breached, there is still a chance, albeit not a high one, for AUD to weaken to 0.6450.”