The Australian Dollar finished 0.55% lower to 0.6535 New York close from Friday’s 0.6567 opening in Asia. Overnight the AUD/USD pair hit a low of 0.65059. With the UK and US on holiday today, trade will be slower today with the ranges likely to hold. Rising tensions between China and the US will be a weight for the Aussie Battler which has held up remarkably well. Australia and New Zealand have battled the Covid-19 outbreak better than the rest, easing restrictions earlier than most. With the cooler winter just ahead (June-August), a second wave of infections are likely though.
AUD/USD has immediate support at 0.6500 followed by 0.6470. Immediate resistance can be found at 0.6570 and 0.6610. Market positioning on the Aussie remains short. Last week we the COT/CFTC report saw a modest increase to -AUD 35,425 from the previous week’s -AUD 33,455. Look for a likely trading range today of 0.6475-0.6575, the preference is to sell rallies.
