The Australian Dollar (AUD) extended moves higher to 0.6820 (1.4670) against the Euro (EUR) Friday before being slammed on worse than predicted PMI reads slipping to 0.6755 (1.4800). This week’s action has been all AUD, the cross moving back towards long term levels around 0.6820 (1.4670) this morning. German Business Climate disappointed, slipping to 88.6 in July from June’s 92.2- back to a June 2020 level with businesses expecting the economic climate to become much more difficult over the coming months. Particularly notable was the impact of the gas shortage weighing on the economy as disruptions to supply via Russia to Europe bite. A retest of 0.6850 (1.4600) looks on the cards.
Current Level: 0.6800 (1.4705)
Resistance: 0.6840 (1.5170)
Support: 0.6590 (1.4620)
Last Weeks Range: 0.6707-0.6825 (1.4651-1.4909)