The Aussie jumped 0.91% overnight on the broad-based US Dollar slump and surge in Emerging Market currencies. The market’s risk-on stance also boosted the Battler. AUD/USD closed in New York at 0.5920 from 0.5785 yesterday. In early Sydney, as I write this, AUD/USD is currently trading at 0.5988 it’s highs so far. The next barrier is the psychological 0.60 cent barrier. Expect some resistance between 0.6000-0.6020.
The latest Commitment of Traders/CFTC report (week ended March 17) saw net speculative Aussie short bets cut from -AUD 54,013 in the previous week to – AUD 28,733. The speculative market is still short of Aussie, unlike the Euro where the specs have turned long. This means we can see more violent upward moves should the US Dollar fall further.
Trading in the Aussie was volatile with the overnight low recorded at 0.58114. Expect more of the same today. Immediate support can be found at this morning’s opening of 0.5920 followed by 0.5870. If the immediate resistance at 0.6020 is broken, the next resistance level is at 0.6060. Look for a choppy session today with a likely range of 0.5880-0.6030. Prefer to buy dips still but be prepared to trade the range.
