AUD/USD – Recent Rally in Jeopardy from Renewed Spike in Australian Infections

The Australian Dollar closed little changed at 0.6925 from 0.6916 as risk appetite remained in the balance. The strong US payrolls report saw equities hang on to their gains as a rapid rise in coronavirus cases in America and other new hotspots clouded the near-term outlook. The Australian Business Insider reported that Victoria’s Covid-19 outbreak has spread to other states and territories with new cases reported in Sydney and Darwin. Which were traced to travellers returning from quarantine in Melbourne. The report also quoted epidemiologists saying that it was “highly likely” that more Melbourne suburbs will be forced back into lockdown.

FXStreet AUDUSD Chart - Intraday - 03 July 2020
FXStreet AUDUSD Chart – Intraday – 03 July 2020

The trade conflict between Australia and China, and the US and China is also key to the Aussie Battler’s fortunes. FX Street reported this morning that “China announced its readiness to levy 12% tariffs on Australian beef.” Today sees Australia’s CBA Services PMI’s, China’s Caixin PMI’s and Australian Retail Sales (May).

AUD/USD traded to an overnight high at 0.69522. Immediate resistance today can be found at 0.6950 followed by 0.6980 and then 0.7010. Immediate support lies at 0.6900 followed by 0.6860. The next support level is found at 0.6830. The recent rally in the Aussie is in jeopardy. Look to sell rallies in a likely range today of 0.6840-0.6940.

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