The Australian Dollar (AUD) extended gains made late last week bouncing off a low of 0.6680 climbing into Friday to reach 0.6930 against the US Dollar (USD)- the best performing week for the AUD since February this year. The run was cut short briefly Wednesday on weak survey data and a pork products foot and mouth scare coming out of Indonesia and China into Australia. US Home Sales came in poor with speculation the market is about to collapse. The largest US home builder D.R.Horton lowered its build forecast from 83,000 from 90,000 previously, however not all are convinced with strong jobs creations on the horizon. Chart patterns suggest the Aussie may come up against stern resistance around the 0.6980 -0.7000 area based on the 50% retracement of the recent high at 0.7265 and low at 0.6700. Any upside towards this area should be considered seriously for buyers of USD as long-term trend considerations still point to the downside.
The current interbank midrate is: AUDUSD 0.6920
The interbank range this week has been: AUDUSD 0.6780- 0.6937