AUD/USD – Outperforms as Short Bets Cut Further, 0.6950 Caps

The Australian Dollar ended its four-day losing streak against the Greenback, soaring to an overnight high at 0.69226, its highest since June 18 before easing to close at 0.6912, up 1.23%. This morning saw the Aussie Battler climb further to 0.6935 on better-than-expected Australian Manufacturing and Services PMI reported by the Commonwealth Bank. AUD/USD currently sits at 0.6927.

AUDUSD Daily FX Chart - 23 JUNE 2020
AUD/USD Daily FX Chart – 23 JUNE 2020

The latest Commitment of Traders/CFTC report saw net speculative Aussie short bets cut further to its lowest total since May 2018. According to Saxo Bank, speculative total Australian Dollar short bets fell to -AUD 6,532 contracts in the week ended June 16 from the previous week’s -AUD 36,575.
Which is a hefty cut that saw the Aussie Battler rebound 28% of its March lows.
Any spike in new Covid-19 cases that will hit risk appetite will hit the Aussie. Which now has more downside room since many of the shorts are out of play.

AUD/USD has immediate resistance at 0.6950 followed by 0.6980 and 0.7010. Immediate support can be found at 0.6910 and 0.6880. Look for consolidation in a likely range today of 0.6880-0.6940. Prefer to sell rallies toward 0.6970.

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