The Australian Dollar (AUD) has bounced back from 0.5995 (1.6680) losses over the last couple of trading against the Euro (EUR) reaching 0.6055 (1.6515) this morning. Risk sentiment came roaring back towards the close of the week and into Monday after conflicts between Iran and Israel Friday were downplayed. We see resistance at 0.6060 (1.6500) levels the fib 50% retracement of last week’s move. Aussie inflation report for the March quarter prints tomorrow- 0.8% forecast vs 0.6% previous, more importantly this should shift the y/y number from 4.1% to 3.4% and may put pressure on the AUD. A possible retest to 0.6025 (1.6600) levels has a chance.
Current Level: 1.6504
Resistance: 1.6600
Support: 1.6500
Last Weeks Range: 1.6412- 1.6680