The Australian Dollar slipped 0.97% to 0.6387 in late New York from yesterday’s opening of 0.6338. Overnight low traded was 0.62534 as weak commodity prices which resulted from another huge plunge in oil weighed on the Battler. Iron Ore prices though remained stable. RBA Governor Philip Lowe said yesterday that Australian wages will be low and that current interest rates are likely to remain weak for a few years. Lowe forecast that the economy would contract by 6% in 2020.
AUD/USD has immediate support at 0.6250, a break of which could see 0.6215 tested and eventually 0.6185. Immediate resistance can be found at 0.6310 and 0.6360 followed by 0.6400. The latest Commitment of Traders/CFTC report saw net speculative Aussie shorts steady at -AUD 35,554, little changed from the previous week. Short market positioning is a supportive factor for the Battler.
Expect a likely range today of 0.6230-0.6330. Prefer to sell rallies.