The AUD/USD pair extended its recent decline, reaching 0.7006, according to FX Street. The report noted a positive divergence suggesting that the downward momentum may be slowing, although no clear support level has yet been established.
Meanwhile, UOB analysts, including Quek Ser Leang and Lee Sue Ann, indicated that the weakness in AUD/USD could persist, potentially pushing the pair toward the 0.6970 level. This suggests that further downside risks remain in the near term.
For Japanese investors, monitoring AUD/USD movements is important as fluctuations in the currency pair can impact trade and investment strategies involving Australian assets and commodities, which are significant for Japan’s resource-dependent economy.