The Australian Dollar (AUD) continued its surge higher off Monday’s open reaching 0.6900 early morning Tuesday against the US Dollar (USD) on risk improvement. USD long positions look to have cashed up giving way for a rally of sorts, also equity and commodity rises have also helped to inspire the AUD. We have quite a bit of event risk this week with a full calendar of data releasing. Aussie jobs data should reflect a sharp rebound and a potential drop in unemployment. The main event being US August Inflation with forecast predicting -0.1% m/m. Recent comments from the Fed suggest a soft CPI read won’t persuade them from hiking a further 75 points next week. Fib resistance at 0.6900 suggests we could see a little downside develop in the cross.
Current Level: 0.6883
Resistance: 0.6950
Support: 0.6850
Last Weeks Range: 0.6697-0.6877