The Australian Dollar extended its advance against the overall weaker Greenback and market’s improved risk sentiment. AUD/USD hit fresh 5-week highs at 0.64446, settling at 0.6440 in late New York. Overnight low traded was 0.63745. The extended rebound in risk assets and equities has kept the Battler on strong footing. Investors shrugged aside the start of the US earnings season, which will show the extent of the Covid-19 damage on businesses.
The US Dollar extended its decline against the Asian and Emerging Market currencies for the second day running. While talk emerged of an economic restart in the US, France and India have extended lockdowns. In Korea, experts warned of “reactivation” in previous patients. China reported its highest number of cases in 6 weeks. Singapore saw its Covid-19 new cases jump to its biggest yesterday. Australia’s Employment report for March is released tomorrow. All factors that will limit the Aussie’s topside today and may see it under pressure again.
Immediate resistance lies at 0.6450 and 0.6500. Immediate support can be found at 0.6410 and 0.6370. Look for a likely range today of 0.6350-0.6450. Prefer to sell rallies.