In opinion of FX Strategists at UOB Group, the downside pressure in AUD/USD is expected to mitigate on a break above the 0.60 level.
24-hour view: “Our view for AUD yesterday was that it was ‘taking a pause from its recent rapid and sharp decline’ and we expected AUD to ‘trade in a broad 0.5600/0.5900 range’. AUD subsequently traded between 0.5699 and 0.5845 before moving higher after the close of NY. The short-term AUD strength has room to extend higher but for today, a break of the strong resistance at 0.6000 appear unlikely. Support is at 0.5840 followed by 0.5790.”
Next 1-3 weeks: “AUD rebounded sharply to a high of 0.5987 last Friday (20 Mar) before closing up by +1.18% (0.5810). The surprisingly strong rebound has dented the recent strong downward momentum somewhat. However, only a move above 0.6000 (no change in ‘strong resistance’ level) would indicate the recent weakness has stabilized. Until then, AUD could still take out last week’s multi-year low at 0.5510.”