AUD/USD risks a drop to the 0.60 neighbourhood – UOB
AUD/USD remains under pressure and further losses could extend to the 0.6000 region if the downside pressure picks up extra pace.
24-hour view: “Instead of ‘drifting lower’, AUD posted one of its most aggressive drop as it ended the day lower by a mammoth -3.87% (NY close of 0.6235). From here, barring a move back above 0.6370 (minor resistance at 0.6330), AUD could weaken further to 0.6150.”
Next 1-3 weeks: “The supposedly ‘flash crash’ on Monday (09 Mar) is no more a flash as AUD posted a stunning 1-day drop of -3.87% yesterday. The last time we seen price action of such magnitude was at the heights of the GFC in 2008. While the steep decline appears to be running ahead of itself, the lack of support levels of note could lead to further sharp drop. From here, the next support is at the GFC low of 0.6007. On the upside, ‘strong resistance’ is at 0.6500.”