The Australian Dollar grinded lower in true Battler fashion to finish at 0.6415 in late New York, down 0.94% from 0.6465 Friday morning. Overall US Dollar strength as well as a souring of risk appetite weighed on the Aussie, preventing it from 0.6480 overnight. AUD/USD saw a high at 0.64735 and a low at 0.64020.
Escalating tensions between the US and China are also keeping the Aussie at bay. Over the weekend, a war of words between US President Trump and China’s Global Times’ Hu Xijin intensified. Both have suggesting expanding their nuclear weapons. Australia faces its own trade tensions with China over China’s rejection of Aussie beef and barley exports. Which follows Scott Morrison’s call for an international inquiry into the source of the Covid-19 pandemic.
Fears over a second wave of Covid19 after Australia eased restrictions are also weighing on the Battler. Weighing on the Aussie Dollar as well is the weakness of the Kiwi. The one supportive factor is the speculative Aussie short bets which at the last reading of the COT report were -AUD 33,455.
Immediate support for the Australian Dollar lies at 0.6400. The next support level is at 0.6370, which at risk of trading, possibly breaking today. The next support level lies at 0.6340 and 0.6310. Immediate resistance can be found at 0.6440 followed by 0.6470 and 0.6500. Look for an initial trading range of 0.6375-0.6455 with the preference to sell rallies