The Aussie Battler continued to cling on to its hold around the 0.66 cent mark after this morning’s risk-off gap hit FX. AUD/USD closed in New York at 0.6645, climbing from 0.6592 on Friday on the broad-based US Dollar decline. The Australian Dollar slipped to 0.65959 in early Sydney trade, before rising to settle at 0.6615 currently.
On Friday, Australian Retail Sales missed expectations of 0.0% falling to -0.3% in February, although beating January’s -0.5%. The negative impact of the Australian bush fires and recent coronavirus on the retail sector extended, although February’s sales improved from the previous month. Over the weekend, Australian Treasurer Josh Frydenberg said that the details of a fiscal response to COVID-19 is being finalised. This is positive for the Aussie Battler given that interest rates are about as low as they can be. With US rates set to fall further, the AUD/USD pair will gather support.
AUD/USD has immediate support at 0.6585 followed by 0.6555. Immediate resistance can be found at 0.6640 and 0.6670. Look for a likely range today of 0.6585 to 0.6685. Prefer to buy dips.