AUD/USD – Rally Running Out of Steam, 0.6680 Cap, 0.6580 Support

The Aussie Battler’s rally halted at 0.66673 overnight as the market’s favourite risk barometer ran out of steam, slipping to 0.6635 in late New York. When the announcement that President Trump will hold a press conference on China hit the wires, AUD/USD slid to 0.6610 before settling at its current 0.6627. The Aussie Battler will continue to be driven by the market’s risk sentiment.

AUDUSD Daily Chart - FXSTREET - 29 May 2020
AUDUSD Daily Chart – FXSTREET – 29 May 2020

Yesterday RBA Governor Philip Lowe warned that Australian workers are headed for a “critical point” in September. Lowe referred to initial six-month limits placed on measures such as the government’s Jobkeeper program. Australian data released today is Australia’s Private Sector Credit which will not elicit much response from FX. Traders will await tonight’s US Core PCE Price Index and Personal Spending.

AUD/USD has immediate resistance at 0.6650 followed by 0.6680. A break above 0.6680 could see 0.6710. Immediate support can be found at 0.6610 followed by 0.6580. A sustained break at 0.6580 would see us back to 0.6530. Look to sell rallies in a likely trade today between 0.6550-0.6670.

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