Instead of continuing to decline, the Australian Dollar (AUD) is more likely to trade in a sideways range between 0.6785 and 0.6825. In the longer run, momentum has increased; AUD is likely to decline further, potentially breaking below 0.6750, UOB Group FX analysts Quek Ser Leang and Peter Chia note.  

AUD is likely to decline further

24-HOUR VIEW: “While we expected AUD to continue to weaken last Friday, we indicated that it “it does not seem to have enough momentum to break clearly below the major support at 0.6820.” However, AUD fell more than expected, plummeting to a low of 0.6786. Despite the relatively sharp drop, there has been no significant increase in downward momentum. Today, instead of continuing to decline, AUD is more likely to trade in sideways, probably between 0.6785 and 0.6825.”