The Australian Dollar’s upside momentum waned after its failure to clear above 0.7000 cents yesterday even as Victoria recorded 165 new coronavirus cases yesterday, its second highest daily total. In the neighbouring state of New South Wales (Australia’s largest state by population), Premier Gladys Berejiklian warned that it would be several weeks before NSW knows where Covid-19 has made a resurgence despite closing the border with Victoria according to the Sydney Morning Herald in a report today. Further spikes in Victoria are forecast.
The overall stronger Greenback also weighed on the Aussie Battler. AUDUSD closed in New York at 0.6963 after trading to an overnight low at 0.69502. The Aussie peaked at 0.7001 earlier in the Asian session as China’s Offshore Yuan and other Asian currencies rallied. AUDUSD has immediate resistance at 0.6980 and 0.7010. Immediate support can be found at 0.6950 followed by 0.6920 and 0.6880. Look for the AUDUSD to grind lower in a consolidation today which is likely between 0.6910-0.6980.