AUD/USD – Room for Further Downside Correction in Choppy Trade

The Australian Dollar had a highly volatile session, plunging to an overnight low at 0.68985 before bouncing to a New York close at 0.6962 from yesterday’s 0.7020 opening. The Aussie Battler took a breather, consolidating following its 8-day run higher. First up today for the Aussie is China’s CPI and PPI reports. Both inflation numbers are expected to drop.

AUD-USD 4H Chart - LiveCharts UK - 10 June 2020
AUD-USD 4H Chart – LiveCharts UK – 10 June 2020

From here on in, the focus is on the US Dollar and the Federal Reserve. If the Fed’s interest rate and economic projections are less dovish that most economists expect and Jerome Powell is less pessimistic, the Greenback could see a decent bounce. Which would see the Aussie, Kiwi and Canadian Loonie all lower. A grim outlook would see a lower US Dollar with the Australian Dollar leading risk currencies back higher.

AUD/USD has immediate resistance at 0.7000 followed by 0.7040. Strong resistance lies at 0.7080. Immediate support can be found at 0.6930 followed by 0.6900 and 0.6860. Strong support lies at 0.6775. Look to trade a likely 0.6920-0.7020 range first up. Prefer to sell rallies to 0.7020, this Aussie could correct further.

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