The Australian Dollar battled to extend its gain for the second day running, finishing above 0.58 cents at 0.5835 (0.5800 yesterday). The Aussie strengthened on the back of a generally weaker US Dollar and proactive Australian government. While the US Senate failed to pass the much-awaited Covid-19 bill, Australian PM Scott Morrison announced the government’s second stimulus measure yesterday.
AUD/USD traded to an overnight high at 0.5845. Immediate resistance for today is found at 0.58650 and 0.5900. The next resistance level lies at 0.5950 and 0.6000. Immediate support can be found at 0.5770 followed by 0.5720 and 0.5660. Markets took little notice of Australia’s Flash Manufacturing and Services PMI’s for March released this morning. Both were basically in line with expectations.
FX will continue to focus on the virus outbreak data and macro stimulus. Look for a likely trade today of 0.5740-0.5920. Prefer to buy dips, the Battler is headed higher after some consolidation.