AUD/USD: Under mild downward pressure and can test 0.6250 - UOB Group

Australian Dollar (AUD) is under mild downward pressure and could test 0.6250 vs US Dollar (USD); the major support at 0.6215 is not expected to come into view. In the longer run, current price movements are likely part of a range trading phase between 0.6215 and 0.6355, UOB Group's FX analysts Quek Ser Leang and Peter Chia note. 

Major support at 0.6215 is not expected to come into view

24-HOUR VIEW: "Following the drop in AUD to 0.6283 last Friday, we pointed out yesterday that 'The decline lacks momentum, and the current price movements appear to be part of a range trading phase, most likely between 0.6280 and 0.6330.' Our view was incorrect, as after testing the top of our expected range (high of 0.6331), AUD fell sharply to a low of 0.6265. Further declines are not ruled out, but given that momentum is not strong, any weakness is likely limited to a test of 0.6250. The major support at 0.6215 is not expected to come into view. Resistance is at 0.6295; a breach of 0.6320 would indicate that the current mild downward pressure has eased." 

1-3 WEEKS VIEW: "After expecting AUD to recover since late last week, we indicated yesterday (10 Mar, spot at 0.6305) that 'The buildup in momentum is slowing, and a breach of 0.6265 ('strong support' level) would suggest AUD is likely to trade in a range instead of recovering.' During the NY session, AUD fell to a low of 0.6265. While our 'strong support' level has not been clearly breached, upward momentum has largely faded. The current price movements are likely part of a range trading phase between 0.6215 and 0.6355."