The Australian Dollar closed lower at 0.6892 in New York after another roller coaster trading session between 0.68337 (overnight lows) and 0.69769 (overnight high). Yesterday, Fed-led optimism from its latest move to purchase corporate bonds boosted risk and the Aussie Dollar. The notable rise in US Retail Sales which resulted in broad-based Greenback strength weighed on the Aussie. Meantime coronavirus cases continue to rise amidst reopening efforts which traders will monitor closely. The recent rise in cases in Beijing and Tokyo heightened fears of a second wave.
The next set of first tier Australian economic data is tomorrow’s Employment report. Until then, the Battler will take its cues from the US Dollar moves, Covid-19 developments as well as news on geopolitical tensions in the Asian region.
The latest COT report for the week ended June 9 saw speculators trim their net short Australian Dollar bets to -AUD 36,575 from the previous week’s -AUD 40,791. AUD/USD has immediate support at 0.6860 followed by 0.6830. Immediate resistance can be found at 0.6920 and 0.6970. Look to sell rallies today in a likely range of 0.6830-0.6930.
