The Australian Dollar extended its downtrend which began last week from a high at 0.6977 to this morning’s low at 0.6810. AUDUSD currently sits at 0.6817. China’s Global Times reported a suspension of the country’s beef imports from US poultry and meat company Tyson Foods. China was citing pandemic infections linked to meat plants as well as ongoing trade tensions between the two countries. Fears of a second wave of the coronavirus where several US states are reporting fresh spikes in cases, continue to weigh on the Battler.
Governor Philip Lowe is currently participating in a panel discussion about Covid-19 and the global economy at the Australian National University’s Crawford Leadership Forum in Canberra. The RBA has shown its readiness to act during the pandemic and Lowe’s comments will be scrutinised for any signals on the economy which could affect the Battler.
The Aussie has had good support so far at the 0.6800 level where commercial buying and profit-taking orders support the bid. However, a break of this level will automatically see a test of the 0.6760 level. The next support level lies at 0.6730. Immediate resistance can be found at 0.6840 followed by 0.6880 and 0.6910. Look for consolidation in a likely range today of 0.6770-0.6870. Prefer to sell rallies.