Audusd To Decline In Long Term

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Audusd To Decline In Long Term

Aud/Usd To Decline In Long-Term - Uob Group

The AUD/USD is at high risk of dropping even further from its current levels. However, that will likely wait unless the AUD/USD pair recovers from its oversold conditions. So, for now, the 0.6080 handle is expected to remain untouched, but it will not stay like that for long.

The long-term trend clearly shows that the AUD/USD pair is expected to decline towards 0.6000. Whether that handle will serve as support or give up on strong bearish pressure remains to be seen.

0.6000 Remains Key Level For Aud

According to the UOB Group, the next key level for the AUD/USD is 0.6000. Once it reaches there, the next battle will be whether the 0.6000 handle can serve as support or turn into another resistance.

The weakness in the Australian Dollar (AUD) comes as the USA is taking protective measures to support its economy. From higher tariffs to the risk of higher inflation in the USA, all of that will strengthen the US Dollar.

With a stronger US Dollar, the AUD faces headwinds in both the short and the long-term. Especially, the tariffs on China are already in place and we don't know what's ahead.

So, these tariffs on China will also ultimately impact the Australian economy. A direct result of this will be a weaker AUD across the board.

If we look at the bigger picture, 0.6330 is the near-term high for the AUD/USD pair. In terms of resistance, the 0.6200, 0.6300, and 0.6500 remain relevant in the medium to long term.

As for the support levels, the 0.6000 is the first line of defense of the AUD buyers. But once that is lost to the USD bulls, the next rest stop for the AUD/USD pair will be at 0.5800.

One of the major headwinds for the AUD/USD pair is the tariff wars started by the US president. These measures are sure to hit the demand of commodities and especially metals.

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