FX Insights

The ease of which the strong 0.7380 support was taken out comes as a surprise. AUD hit a low of 0.7372 yesterday and the weak daily closing coupled with rapid improvement in downward momentum suggests further AUD weakness in the coming days. From here, we are anticipating a break of the rising trend-line support at 0.7355 for a move towards last month’s low at 0.7330. The next support below this level is at 0.7260. Stop-loss is placed at 0.7455 even though on shorter-term basis, 0.7420 is already a strong resistance.