The Australian Dollar fell following a souring of risk appetite from reports of rising Covid-19 infections in several US states and other global hotspots. AUD/USD slumped 1.1% to 0.6870 in late New York from 0.6930 yesterday. Victoria, the country’s second most populous state, reported a rise of 20 new infections and one death yesterday. It was the 8th consecutive day that the state reported double-digit cases. Last night supermarket giants Coles and Woolies reintroduced purchase restrictions in the state after experiencing high demand for certain items (toilet paper, hand sanitiser, flour, pasta etc).
The Aussie Battler will remain pressurised on the broad-based US Dollar strength and weak New Zealand Dollar. AUD/USD has immediate support at 0.6860 (overnight low 0.68625). The next support level comes in at 0.6830 and 0.6800. Immediate resistance can be found at 0.6890 and 0.6910. Look for the Aussie to consolidate within a 0.6800-70 range today. Prefer to sell rallies.