UOB Research discusses AUD/USD technical outlook and highlights the importance of the 0.6950 on the upside and 0.6820 on the downside.
"The major support at 0.6820 held as expected, with AUD only getting as low as 0.6850 in the past 3 sessions. Although AUD has recovered to about 0.6900 currently, upside momentum remains remain modest at best. As before, we maintain that “only a move back above 0.6950 would indicate the current weakness has stabilized” and it is probably too early to tell that AUD is out of the woods," UOB notes.
"On the downside, look for supports at 0.6850 and 0.6820 and if AUD was to register a NY closing below 0.6820, it would indicate that the late December high of 0.7032 is a more significant top than currently expected," UOB adds.