The Aussie Battler continued its impressive grind higher after plummeting to fresh 2002 lows just a week ago (0.55062. AUD/USD rallied to an overnight and near 10-day high at 0.60875 before easing to settle at 0.6047 in early Sydney. The Aussie benefitted from the US Dollar’s drop against all its major rivals and Emerging Market currencies.
The blowout in US Jobless Claims coupled with a decline in global company short-term US funding boosted the Aussie Battler. Risk assets also climbed after Federal Reserve Chairman Jerome Powell reassured investors that the Fed will not run out of bullets to deal with further fall-out in the US economy. The US 2.2 trillion aid bill is virtually assured to be passed by the House of Representatives when they vote tonight. All are supportive factors for the Australian Battler.
That said, expect the AUD/USD pair to take a breather today as FX consolidates its climb against the Greenback. AUD/USD has immediate resistance at 0.6080 followed by 0.6110 and 0.6170. The next resistance at 0.6200 is formidable. Support for the Aussie Battler comes in at 0.6020 followed by 0.5970. Look for a likely trading range today of 0.5985-0.6085. Preference is still to buy dips, not rallies.