The Australian Dollar (AUD) slumped to a May 2020 low of 0.6710 against the US Dollar (USD) in yesterday’s trading, a fresh May 2020 low. A brief return early morning to 0.6815 was temporary, the cross back around 0.6730 with the AUD looking like it’s on its way lower. US inflation rose to 9.1% y/y from May’s 8.6% which should end any debate over whether the US Fed will hike 50 or 75 points when the Fed meet at the end of July. Some analysts are suggesting a 1% move is more likely given inflation is showing no sign of retreating and the economy has a good chance of falling into a formal recession. Following this rise the Fed will hike the interest rate again possibly 75 points in September. Support on the chart is 0.6660, a break below here and the cross could slide into a free fall.
The current interbank midrate is: AUDUSD 0.6744
The interbank range this week has been: AUDUSD 0.6709- 0.6849