US Non-Farm Payroll Friday boosted the Australian Dollar to fresh highs of 0.6660 against a weakened US Dollar (USD). In fairness the AUD came from a low of 0.6480 much before the release. China imports data and a stronger equity market also contributed to the strong move higher. Notably the cross has rejected 0.6660 on the topside which sits plumb on the 50% fib retracement of the recent low of 0.6440 and the high of 0.6870 at the start of the year. A slew of US data releases this week including Retail Sales and CPI y/y Wednesday. We think the AUD may drop away towards 0.6540 areas.
Current Level: 0.6610
Support: 0.6500
Resistance: 0.6670
Last week’s range: 0.6476- 0.6666