It’s surprising to see prices in the Australian Dollar (AUD), US Dollar (USD) climb higher off the weekly open given the state of geopolitical tensions developing in Israel. The Aussie has reversed all of last week’s losses reaching 0.6410 as I write. We would expect risk flow towards the end of the week to have an impact on movement with things expected to ramp up in Israel. Resistance at 0.6450 should hold leading into Friday’s US CPI y/y, the week’s main data release. The recent dovish Fed shouldn’t come into effect this week, instead markets most likely will be focusing on the “safe haven” play.
Current Level: 0.6420
Last week’s range: 0.6284 – 0.6443