AUD/USD – Holds Above 0.60 Cents, Recovery Fragile

The Australian Dollar retreated for the fourth day in a row to finish 0.56% lower at 0.6050 after falling overnight to 0.60067. The Battler got caught up in the USD rally against the Majors despite an easing of USD/EMS. This morning Australia’s AIG Construction Index dropped to 37.9 in March from the previous month’s 42.7. Chia releases its Caixin Services PMI today which could provide the Battler short term direction.

AUDUSD Daily Chart - 03 April 2020
AUDUSD Daily Chart – 03 April 2020

A generally weaker US Dollar should result in the Australian Dollar holding the 0.6000 cent mark. The US continues to suffer the effects of the coronavirus impact on its economy. Tonight’s Payrolls report is expected to see a median of 100,000 jobs lost, the first fall since 2009. Next month’s US Payrolls will be worse. The latest COT report saw speculative total Aussie short bets trimmed a touch to -AUD 25,207 from -AUD 28,733.

AUD/USD has immediate support at 0.6000 followed by 0.5960. Immediate resistance can be found at 0.6100 and 0.6150. Expect some consolidation today with a likely 0.6010-0.6110 range until the US Payrolls release.


Was this post helpful?