The Australian Dollar retreated against the broadly firmer US Dollar following two solid trading days of gains. AUD/USD had a go at 0.65614 last night, just short of 0.6570 resistance, tumbling back to 0.64564 overnight before climbing to settle at 0.6490 at the New York close, a loss of 0.51%. Strong risk sentiment which has boosted the Aussie Battler has begun to wilt under the pressure of higher yields ahead of the US treasury auction.
![LiveChartsCo UK - AUDUSD - 1H - 12 May 2020](https://thetradersspread.com/wp-content/uploads/2020/05/LiveChartsCo-UK-AUDUSD-1H-12-May-2020-1.png)
The latest Commitment of Traders report (week ended 5 May) saw net speculative Aussie short bets trimmed to -AUD33,455 contracts from -AUD 37,741 the previous week. While the short AUD market positioning is a support for the Battler, the currency is vulnerable to bouts of risk aversion.
AUD/USD has immediate resistance at 0.6520 followed by 0.6560. Strong resistance lies at the 0.6600/20 area. Support for the Aussie Battler can be found at 0.6450 (overnight low, 0.64564) followed by 0.6420. Expect the AUD/USD pair to consolidate today with a likely range of 0.6430-0.6530. Prefer to sell rallies on the day.