AUD/USD – Recent Strength Sapped, Covid-19 Second Wave, China Data Next

The Aussie Battler extended its slump lower against the US Dollar after its foray above 0.70 cents last week. AUD/USD closed in New York on Friday at 0.6845, little changed from its opening price at 0.6850. Latest reports of a rise in Covid-19 cases in Beijing, Tokyo and many US states weighed on risk sentiment and the Australian Battler.

FXCM AUDUSD 6M Chart - 15 June 2020
FXCM AUDUSD 6M Chart – 15 June 2020

AUD/USD hit an overnight low of 0.67998 on Friday before bouncing back to 0.6840 as equities rebounded in late New York. This morning, the Aussie stays depressed, following the latest news of a partial, Covid-19 related shutdown in Beijing. Today sees the release of China’s trifecta of Retail Sales, Industrial Production and Fixed Asset Investment data. Overall improvements are expected on the reports for last month as China’s economy recovered and the country eased lockdown restrictions. This latest piece of news from Beijing is a set-back and any further rise in cases will see risk appetite slump. The data will have to be exceptional to trump any Covid-19 spike in cases.

AUD/USD has immediate support at 0.6800 followed by 0.6750 and 0.6720. Immediate resistance can be found at 0.6870 and 0.6910. Look for consolidation in a likely 0.6760-0.6860 range today. Prefer to sell rallies.

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