The Australian Dollar ( AUDUSD )finished little changed at 0.6868 (0.6864) despite worries about a second wave of Covid-19 infections. The country’s second most populous state of Victoria recently saw a spike of Covid-19 infections in several hotspot suburbs. The state’s chief health officer Brett Sutton indicated that it was “absolutely an option” to put some hotspot suburbs into a secondary lockdown. Total global coronavirus cases rose to 10.38 million while deaths climbed to 507,203 at the latest count. Better than expected US economic data lifted equities and supported the Australian Battler.
AUDUSD traded to an overnight high at 0.68909 before easing to its New York close. Overnight low traded was at 0.68417 as volatility eased. Today sees the release of Chinese Manufacturing and Non-Manufacturing PMI’s. On Thursday, Australia reports its latest Employment report. RBA Deputy Governor Guy DeBelle is due to speak on the Reserve Bank’s policy actions and balance sheet at the Economic Society of Australia’s webinar where questions are expected.
Look for consolidation of AUDUSD in a likely trading range today of 0.6830-0.6910. Prefer to sell into any rally around the 0.6900 cent mark.