The rally in Wall Street stocks lifted the risk sensitive Australian Dollar to a fresh 10-week high at 0.66162 before slipping to 0.6590 in early Sydney. Despite rising Sino-Australian tensions, and a slump in Australian Retail Sales, the Battler continued its climb higher against the hapless Greenback, defying gravity.
Today the Aussie Dollar faces another test with the release of the Commonwealth Bank’s Australian Manufacturing, Services and Composite PMI reports. Factory Output in May is forecast to climb to 46.5 from 44.1 while the Composite PMI is forecast to improve to 26.4 from 21.7. RBA Governor Philip Lowe is expected to speak and give an update on the coronavirus at a panel discussion hosted by the Financial Services Institute.
AUD/USD has immediate resistance at 0.6620 followed by 06650. Immediate support lies at 0.6570 followed by 0.6540. The air is getting a bit thin for the Aussie Battler up at these levels. A pullback is likely with a range between 0.6530 and 0.6630 envisioned.
