The Aussie Battler jumped in early Sydney from its New York close of 0.6091 to a high at 0.6122. Overnight the AUD/USD pair gained 0.73% to 0.6090. The market’s risk on mode lifted the Australian Dollar and other resource currencies higher. Gold and other metal prices rallied while Oil steadied.
AUD/USD traded to an overnight low at 0.59912 before its strong bounce.
The latest Commitment of Traders report (week ended 30 March) saw speculative Aussie short bets climb to -AUD 31,664 contracts from the previous week’s -AUD 25,207. This is a supportive factor for the Aussie, which saw a remarkable climb of its 2002 lows at 0.5506 to 0.6214 in just over 2 weeks.
The RBA is expected to maintain its Official Cash Rate at its policy meeting today (2.30 pm Sydney time). This should keep the AUD/USD pair capped around this morning’s high at 0.61226. Immediate support lies at 0.6080 followed by 0.6050. Look for a likely range today of 0.6050-.6130. Just trade the range shag on this one today.