The fall in equities and currencies post Fed outcome and statement saw the AUD/USD back off its July 2019 high at 0.70643 to 0.6992 in early Asia. Chinese data released yesterday saw a fall in CPI and PPI. While over the weekend, China’s Trade Surplus may have jumped, but it was the result of a fall in both exports and imports. The Australian Dollar shrugged these off, boosted by the climb in equities.
AUD/USD will find the going above 0.70 cents difficult without a decent correction. The Aussie Battler’s impressive move higher is overextended. Overnight price action reveals that. AUD/USD has immediate resistance at 0.7030 followed by 0.7070. Immediate support can be found at 0.6960 followed by 0.6930. Look for a likely trading range today of 0.6930-0.7030. Prefer to sell rallies.
