The Australian Dollar (AUD) has extended gains Monday clocking 0.6770 a far cry from the early June low of 0.6460 as sentiment improves and equities rally. The Aussie has been the outstanding performer in June offsetting recent talk of higher chances of the Australian economy falling into a recession. A massive week of economic data is releasing over the next few days highlighted by Fed rate release and Australian Unemployment. With expectations of the Fed cutting rates in the 4th quarter this could undermine the greenback and bring in the Aussie carry trade into play. However, we don’t rule out 1 further hike in the next couple of months, the scales are still tipped to the downside for the pair.
Current Level: 0.6753
Resistance: 0.6810
Support: 0.6700
Last Weeks Range: 0.6575-0.6750