Risk sentiment is painting a pretty dim view of recent moves in the Australian Dollar (AUD), US Dollar (USD cross with the price reaching fresh lows at 0.6910 early this morning. Crashing through key support at 0.7000 during early Monday trading, fears of a global recession remain high on investor minds as risk products continue to show red. US inflation surprisingly rose late last week y/y to 8.6% from 8.3% and is the highest it’s been since December 1981, laughing off 8.3% expected. There was discussion that the US Inflation had topped out but as energy, fuel and food costs continue to balloon higher. Fed chairman Powell now faces the predicament of what to do next, we expect a rise of 50 points to 1.5% in their June 16th FOMC meeting and 50/50/25 interest rate moves over the following 3 reports. 0.6850 the long-range support holds concern, a breakthrough here the June 2020 level and we could see a further run lower.
Current Level: 0.6934
Resistance: 0.7050
Support: 0.6850
Last Weeks Range: 0.7037-0.7246