Declines in Metal/commodity prices have led to a steep drop in the Australian Dollar (AUD) last week against the US Dollar (USD) ,closing at 0.6350 after opening around the 0.6520 area. The recent hawkish tone by the RBA hasn’t helped the Aussie after the RBA hiked rates from 4.10% to 4.35% last week. Indicators suggest we may have seen a base form at the 0.6280 support zone, a November close below this area however would suggest a deeper downtrend, certainly the multi-year low at 0.6200 could come under pressure. On the calendar this week is the US CPI with a forecast of a dip to 3.3% from 3.7% y/y. Last week Powell said the Fed had not done enough to bring down inflation, we shall see.
Current Level: 0.6377
Support: 0.6300
Resistance: 0.6500
Last week’s range: 0.6337 – 0.6522