UOB Research discusses AUD/USD technical outlook and flags a scope for a test of the 0.6500 level in the near-term.
"Rapid improvement in momentum suggests AUD is likely to test 0.6500 next. We have held the same view since last Friday (14 Feb, spot at 0.6615) that “the risk for AUD is on the downside towards 0.6550”. After trading sideways for a few days, AUD plunged to an overnight low of 0.6542," UOB notes.
"The rapid pace of decline was not exactly expected and the rapid improvement in momentum suggests AUD is likely to test 0.6500 next. On the upside, only a breach of 0.6610 (‘strong resistance’ level previously at 0.6680) would indicate the current weakness has stabilized," UOB adds.