The Aussie Dollar, the leading risk barometer currency ratcheted higher to 0.6675 overnight a high not seen since March 10th this year. The optimism from global economic reopenings and a ramping up of vaccine efforts encouraged the Aussie Dollar bulls. AUD/USD closed at 0.6660 in New York before easing to settle around 0.6645 currently.
Meantime tensions between China and Australia continued to grow. China’s Commerce Minister confirmed that the 80% tariff on Australian barley was tied to Canberra’s trade investigations. The Chinese official claimed that since diplomatic relations between both countries were established in 1972, China has launched only one trade remedy investigation against Australia. During the same period, Australia has launched 100 trade remedy investigations into China. This will continue to disrupt relations between the two countries and will affect the Aussie economy and the Battler.
AUD/USD has immediate resistance at 0.6675 followed by 0.6700. Immediate support can be founda t 0.6610 followed by 0.6570. Look to sell rallies today with a likely range of 0.6570-0.6670 today.