The Australian Dollar climbed off its lows yesterday at 0.70826, boosted by the broad-based US Dollar weakness and a strong Kiwi (NZD/USD). AUD/USD rallied to an overnight high at 0.7152, edging up to 0.7160 in early Asia before settling at its current 0.7148 level. The Aussie will continue to take its lead from the Greenback ahead of tomorrow’s Australian CPI report.
Meantime, the country’s coronavirus second wave of daily new cases continue to climb led by the second largest state, Victoria, followed by New South Wales. Total Daily New Cases climbed to 453 yesterday, the largest since July 22 which saw 468 infections. This second wave of daily new cases have been the highest since March. While these numbers pare in comparison with those in the US and other global hotspots, they will still weigh on Australia’s economy.
AUD/USD has immediate resistance today at 0.7160, Friday’s high, and 0.7183, last Thursday’s peak. Immediate support can be found at 0.7120 followed by 0.7090. A corrective up-move in the US Dollar should see the Aussie retreat back down to the mid-70’s. Look for a likely range today of 0.7070-0.7170. Look to sell rallies.