The Australian Dollar plunged in early Asia to 0.64831 from its 0.6515 New York close after comments from US President Trump that he could use tariffs to respond to China. The Aussie Battler pulled back after trading to fresh 7-week and overnight highs at 0.65697. The Battler’s remarkably run has ended for the time being. The 0.66 cent barrier will remain hard to crack.
Today’s Australian data saw the release of the AIG and Commonwealth Bank Manufacturing PMI’s for April. Both printed lower with AIG’s PMI down to 35.8 from 53.7, while the CBA Manufacturing Index dipped to 44.1 from 49.7. Later today Australia reports on New Home Sales and Q1 PPI. New Home Sales for February were steady at 6.2%. A fall much lower than this will see pressure on the Aussie.
AUD/USD has immediate resistance at 0.6530 followed by 0.6560. The big resistance level is at 0.6600 cents. Immediate support can be found at 0.6470 and 0.6440. Look for a likely range today of 0.6430-0.6530. Prefer to sell rallies toward 0.6530.
