The Aussie continued to benefit from the double treat of positive risk sentiment and broad-based US Dollar weakness. AUD/USD gained 0.3% to 0.6530 from Friday’s opening at 0.6495. Overnight high traded was 0.65478. The Aussie has maintained an overall advantage against the Greenback. Australia remains on the front foot as it slowly reopens its economy following the Morrison government’s success in controlling the spread of Covid-19.
Headwinds for any further AUD/USD gains beyond the immediate resistance at 0.6550 and a stronger barrier at 0.6600 cents are any negative developments on the US-China trade relations, where tensions still loom. Australia’s test comes later in the week with the release of the country’s Employment report and unemployment rate.
AUD/USD has immediate support at 0.6500 followed by 0.6460 and 0.6420. Immediate resistance can be found at 0.6550 and 0.6600. Look for a pullback with a likely range today in the Aussie of 0.6480-0.6550.
