The Australian Dollar managed to bounce off its overnight lows at 0.68358 to finish in late New York at 0.6855. The Battler was pressured by the weaker-than-expected fall in Australian Employment and worse than expected rise in the Unemployment rate to 7.1%. Another 227,700 jobs were axed in May following April’s losses of a 607,400 which were revised higher from 594,300. According to the Australian Business Insider, “had masses of unemployed Australians not simply given up looking for a job, the unemployment rates would actually be above 11%”.
Growing fears of a rising second wave concerning the deadly coronavirus continued to drive risk aversion up. Cases in US states Florida and Texas spiked with Texas marking a record jump to total 100,000. Numbers were also up in developing countries led by Brazil, Mexico, Chile, Pakistan and India.
AUD/USD has immediate resistance at 0.6870 followed by 0.6900. Immediate support can be found at 0.6830 followed by 0.6800 and 0.6770. Expect consolidation today within a likely range of 0.6780-0.6880. The pressure remains lower but it’s a Friday and trading the range is the best strategy.
