The Australian Dollar quickly reversed direction, turning south big-time as risk sentiment soured. Traders questioned whether Australian and New Zealand success in containing the coronavirus outbreaks would outweigh the negatives of a US-China trade war on the global economy. The verdict was a big NO and both currencies were punished lower.
In thin, illiquid trading this morning, AUD/USD slipped to an intraday low at 0.6401 initially before giving way to a break of 0.6400 cents to its current 0.6375 level. Just Thursday evening in NY trade the Aussie rose to 0.6570, just shy of the 0.6600 cent mark. The proverbial old-time saying which described AUD/USD trade in the 90’s, “up the stairs, down the elevator” returned to haunt any new Aussie bulls.
This morning, the Aussie looks shaky and the next support level can be found at 0.6340. Immediate resistance now lies at 0.6430, after the Battler closed at 0.6420 in New York. The next resistance level lies at 0.6470. Look for a likely range today of 0.6340-0.6440 with the preference to sell rallies toward 0.6450.