The Australian Battler extended its advance against the US Dollar, lifting to an overnight and fresh 7-week highs at 0.6558 finishing in New York at 0.6553. The Aussie has benefited from an overall weaker US Dollar, and stronger commodity prices. Australia’s government is also seen a relatively successful in batting Covid-19 and the quick return benefits the economy and augers well for the future. Australian CPI grew an annualised 2.2% from 1.8%.
Today sees Chinese Manufacturing PMI data which are released this morning as well as Australia’s Private Sector Credit and New Zealand’s ANZ Business Confidence Survey. A disappointment in the data could take the shine out of the Battler.
The 0.66 cent represents immediate and strong resistance for the AUD/USD. The Aussie’s drop from 0.70 cents at the start of this year held initially around the 0.66 cent mark. Expect a pullback from that 0.66 cent area to the 0.63/0.64 cent support before any sustained rally higher. Immediate support can be found at 0.6510 and 0.6480 followed by 0.6440. Look for a likely range today of 0.6470-0.6570. Prefer to sell into any rallies today.