The Australian Dollar (AUD), USD Dollar (USD) cross has consolidated around 0.6670 levels into Tuesday after large moves last week from 0.6870. The Aussie being hit from lower metal prices, poor sentiment in China and growth prospects. Growth has been revised lower and is expected to slow heading into the 4th quarter dragged lower by weakness in consumption and the chances of the economy falling into a recession, This week’s inflation report should give us clues as to price pressures and how the RBA could react. We expect the central bank to hike in July, but the decision isn’t a given. The key fibonacci level at 0.6670 may lend support to AUD upside.
Current Level: 0.6678
Resistance: 0.6800
Support: 0.6570
Last Weeks Range: 0.6661-0.6882