The Australian Dollar (AUD) has broken resistance on the upside Monday at 0.6590 against the US Dollar (USD), the key 50% fib level also has also been breached suggesting further momentum could be seen over the coming days/weeks. The next level of interest will be 0.6650. The key standout this week is Aussie CPI y/y with predictions of the number falling from 5.6%, we are not so sure with expectations of late rising following weeks of high energy prices. This is most of the reason why the RBA raised rates to 4.35% earlier this month. If we see inflation come in around 5.6% we could very well see interest rates raised again in the RBA’s December 5 meeting. Certainly, those needing to buy USD should consider, with current prices looking attractive.
Current Level: 0.6614
Support: 0.6300
Resistance: 0.6900
Last week’s range: 0.6520 – 0.6589