AUD/USD – Struggling to Hold 0.6000, 0.5970-0.6100 Likely

The Aussie slumped 1.3% to 0.5995 at the close of New York, weighed by the stronger Greenback and risk aversion theme. AUD/USD led the risk currencies (NZD, CAD) lower. Most Emerging Market currencies were also weaker against the Greenback. Upbeat China Caixin Services data failed to lift the Aussie as doubts remain as to the accuracy of Chinese data.

AUDUSD 1H Chart - Daily FX - 6 April 2020
AUDUSD 1H Chart – Daily FX – 6 April 2020

We reported last week the short Aussie speculative bets were trimmed further to -AUD 25,207 from -AUD 28,733 contracts. Trading in the Australian Dollar remains highly volatile. In the Bloomberg Implied Volatility chart, the Australian Dollar is second to the Norwegian Krone at 15.30. Expect more of this ahead as the Aussie has always been a volatile currency.

AUD/USD has immediate support at 0.5970 which is followed by 0.5940. The next support levels lie at 0.5900 and 0.5860. Immediate resistance can be found at 0.6075 followed by 0.6110. Look for a likely range today of 0.5950-0.6100 today. The Battler feels heavy, but then again, it always does near its short-term support levels. Let’s not forget the US Dollar is the other side of the AUD/USD trade, and we can only expect worse US economic data in the weeks ahead.

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