The Aussie held on to it’s gains and kept its momentum going above 0.66 cents. AUDUSD advanced 0.55% to 0.6625 in early Sydney trade this morning. AUD/USD hit a high at 0.66277. Following the RBA’s 0.25% rate cut on Tuesday, the Aussie has recovered as speculative shorts scrambled for cover.
Today traders will focus on Australia’s Trade Balance for January. The US Dollar bounced off a four-week low which should put a cap on the Aussie today. The yield gap between US and Australian 10-years widened last night (US 10-year at 1.0%, Australian 10-year at 0.71%). This should also cap any further short-term Aussie gains.
Immediate resistance today is found at 0.6630 (overnight high 0.66277) The next resistance level lies at 0.6660. Immediate support can be found at 0.6600 and 0.6570. Look to trade a likely range today of 0.6585-0.6635. Prefer to buy dips.