The Australian Dollar is firming but is unable to break convincingly above the 0.7000 cent barrier as the country deals with a second wave of coronavirus infections. On Friday, broad-based US Dollar weakness buoyed the Aussie Battler as the US refused to return to strict lockdowns despite surging Covid-19 cases. Markets are concerned with the longer lasting effects on the US economy.
Australia’s two largest states, Victoria and New South Wales are seeing a second wave of coronavirus cases. This morning, the Daily Telegraph reported a fresh outbreak in regional NSW. Six people have tested positive for Covid-19 in Bateman’s Bay in the states south coast. The New South Wales government has urged residents to wear a face mask in public areas, avoid non-essential travel and high-risk venues. The state’s economy can ill afford a return to a partial lockdown.
AUD/USD has immediate resistance at 0.7000 followed by 0.7030. Immediate support can be found at 0.6960 and 0.6930. Expect a corrective move lower to 0.6950 first up. Likely range today will be 0.6920-0.7020. Prefer to sell rallies.
