The Australian Dollar (AUD) gapped lower off Monday’s open against the US Dollar (USD) but managed to recover to 0.6660 levels this morning. After the run up from the low at 0.6360 levels the pair has consolidated over the past 5 weeks pivoting around 0.6650. With the RBA monetary policy stance offering upside bias to the Aussie we expect momentum should remain for a while. Retesting the 0.6700 top of the recent range is our view this week, certainly a daily close above this level should signal further big picture trend north. Australian CPI y/y prints tomorrow with expectations around 3.8% ticking higher from 3.6%. This should bring about further “higher for longer” and possible hike speak from the RBA.
Current Level: 0.6654
Support: 0.6570
Resistance: 0.6700
Last week’s range: 0.6584- 0.6678