AUD/USD – Weak Chinese Yuan Prevents Advance, 0.6650 Caps

The Australian Dollar retreated under the weight of a weak Chinese Yuan finishing down 0.40% to 0.6620 at the New York close. In early Asia, the AUD/USD pair was trading around 0.6627. The weaker Chinese Yuan and other Asian currencies will prevent any sustained Aussie Dollar advances. Today sees the release of Australia’s Q1 Private Capital Expenditure report which is expected to dip to -2.6% from -2.8%. If the data comes out lower, say at -2.8 to -3.0% it would add downside pressure to the Battler.

FXEmpire AUDUSD Chart - 28 May 2020
FXEmpire AUDUSD Chart – 28 May 2020

AUD/USD has immediate resistance at 0.6650 followed by 0.6680. We can find immediate support at 0.6590 followed by 0.6560. Watch the USD/CNH and USD/Asians today as they could decide the fate of the risk-sensitive Australian Dollar. US GDP and Durable Goods Orders are also due tonight.

Look for the Aussie Battler to consolidate within a likely 0.6550-0.6650 range today. Prefer to sell rallies if the Asians continue to weaken.

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