Extending moves off last week’s yearly low at 0.6270 the Australian Dollar (AUD) continues to claw back losses against the US Dollar (USD) to 0.6380 this morning. We would need to see a break above 0.6390 before a new bull trend is confirmed. Risk flow has benefited the Aussie and other risk currencies and products with things improving in Gaza/Israel. The Israel ‘ground offensive” has got underway, Israeli forces now deep into Gaza, the fear being the involvement of USA and Iran, which hasn’t happened yet with fighting limited to Gaza. Markets are viewing this as good news. Earlier Australian Retail Sales printed much better than the 0.3% forecast for September coming in at 0.9% bringing back questions if the RBA will hike interest rates on 7 Nov. The Fed meet Thursday and should hold rates at 5.50%
Current Level: 0.6369
Support: 0.6300
Resistance: 0.6550
Last week’s range: 0.6270 – 0.6399