The Australian Dollar (AUD), US Dollar (USD) stabilised around 0.6380 into the weekly close, the Aussie holding up pretty well in the face of deteriorating recent Chinese data. This week’s action has seen fresh US weakness giving room for risk currencies to push back- the AUD up at 0.6440 in early Tuesday. The recent strength of the “big” dollar is represented by an 8-week rally in the US Dollar Index, the strongest in the past 9 years. With US inflation printing this week expected to come in around 3.6% up from 3.2% y/y this may give the Fed reason to raise cash rate in the November meeting. The long-term bear trend is still the theme in the pair, perhaps a good time to buy USD if you have been waiting for a spike.
Current Level: 0.6427
Support: 0.6350
Resistance: 0.6880
Last week’s range: 0.6356 – 0.6479