The Australian Dollar was the FX underperformer for the first time in awhile as negative forces on the Battler build. Despite pressure on the US Dollar from the European currencies, the slide in Asian and EM Currencies weighed on the Aussie. Yesterday’s release of the Australian government’s forecast of a massive cash deficit (AUD 184.5 billion) and a contraction in GDP was the first blow to the Battler. Australia’s coronavirus new cases continue to see increases with the largest amount of deaths in 3 months reported yesterday. The government has mandated the wearing of mask in Melbourne. Risk aversion from the escalation of tensions between China and the US kept the Aussie Dollar under pressure.
AUD/USD closed at 0.7097 from 0.7142 yesterday. The overnight high traded was 0.71618. Immediate resistance on the day lies at 0.7125 followed by 0.7150. Immediate support can be found at 0.7090 (overnight low traded was 0.70905) followed by 0.7060 and 0.7020. Look for a likely grind lower in the AUD/USD pair with a likely range today of 0.7040-0.7150. Sell rallies.