The Australian Dollar (AUD) has been unable to hold early week levels around 0.6570 against the US Dollar (USD) dropping in overnight sessions to reach 0.6475. Risk sentiment waned as equity markets were mostly off around 1.5% as investors became nervous around tomorrow’s Fed agenda. Also of note was a weaker US consumer confidence number, the index falling to 97.0 from 103.1 the lowest level since July 2022. As we look ahead to tomorrow’s Fed meeting investors are becoming nervous about inflation expectations and the “higher for longer” mantra. Earlier we saw a drop in Australian Retail Sales falling 0.4% in March, weaker than market predictions, attracting sellers of AUD. Non-farm Payroll prints Friday to end a busy week of economic releases. The level in focus on the downside is 0.6450- a break past here and we could be eyeing 0.6400.
Current Level: 0.6475
Support: 0.6400
Resistance: 0.6640
Last week’s range: 0.6406- 0.6552