AUD/USD – Up on Soft USD, Illiquidity into Chinese Data – 0.6150-0.6400

The Aussie surged higher after the US Dollar broke lower in response to the climb in the latest weekly Unemployment Claim. The number of Americans claiming for Unemployment benefits rose to 6.606 million from the previous week’s upwardly revised 6.867 million (6.648 million). The jump also beat median forecasts of 5 million.  The Federal Reserve also surprised markets with its announcement to provide loans to small and medium sized businesses worth USD 2. 3 trillion.
US 10-year bond yields dropped 5 basis points to 0.72%. Australia’s 10-year bond yield, by contrast was unchanged at 0.90%. The yield gap narrowed. Which should see the AUD/USD capped.

AUSSIE 1 H Chart - Daily FX - 10 April 2020
AUSSIE 1 H Chart – Daily FX – 10 April 2020

AUD/USD closed 0.6335 after trading to 0.6363 overnight high. Immediate resistance lies at the 0.6360 level followed by 0.6400. Immediate support can be found at 0.6300 followed by 0.6240. Markets will be thin as Australia and New Zealand markets will be closed today and Monday. Expect a volatile long weekend with a likely range of 0.6200-0.6400.

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