The Australian Dollar extended its gains to close at 0.6460 in New York, trading to an overnight and fresh six week high at 0.64718 before settling lower. In early Asia, AUD/USD currently trades at 0.6448. Antipodean cousins Australia and New Zealand have weathered the coronavirus crisis better than others as they quickly closed borders in the early stages. This was even before the World Health Organisation officially termed Covid-19 as a pandemic. Which gave them success in containing the outbreak and flattening the curve.
Which in turn has allowed the government to ease restrictions in some states and territories. Australian States Queensland, the Northern Territories and Western Australia said they would ease social distancing this week. Today, New South Wales, the country’s largest State announced that two adults will be allowed to make a visit to someone’s home on the basis of care from May 1.
The Australian Dollar’s rally will slow from here as the focus now falls on the economic fallout with the upcoming data releases. Which will dent the optimism, reverse risk-on and lift the US Dollar. AUD/USD has immediate resistance at 0.6480 followed by 0.6500. The next resistance level lies at 0.6550. Immediate support lies at 0.6400 followed by 0.6350. Look to trade a likely 0.6380-0.6480 range today. Prefer to sell rallies.