The Australian Dollar gained on the improving risk appetite following upbeat global manufacturing and services PMI data. Optimism on the recovery despite still-rising coronavirus infections boosted risk and the Aussie Dollar. The Battler had a highly volatile session with wide swings between 0.6858 and 0.6975 following the Navarro trade drama yesterday. AUD/USD currently sits at 0.6938 despite Victoria reporting 20 new infections. This will cap any gains today at 0.6975 resistance which was last night’s high.
AUD/USD has immediate resistance at 0.6950 followed by 0.6975. Immediate support can be found at 0.6920 followed by 0.6880 and 0.6840. We highlighted yesterday that speculative short Aussie market positioning is at its lowest since May 2018. Look to sell rallies in a likely range of 0.6850-0.6950 today.