The Australian Dollar retraced Friday losses against the US Dollar (USD) from the 0.6620 low reaching 0.6740 early Tuesday as “risk” improved. Repricing of Fed expectations late in the week saw the Aussie drop from 0.6820 on strong data releases as the Fed considers hikes, adding downside pressures for the AUD. US Consumer sentiment rose to its highest level in 2 years as the job’s market remains stable. RBA today should see a rise of 25 points to the cash rate to 4.35%- marking the highest rate since November 2011. Later in the week key Non-Farm Payroll releases should give us plenty of volatility across the board. The cross may struggle to push past 0.6750 resistance this week.
Current Level: 0.6722
Last Weeks Range: 0.6620-0.6819